Home

Commercial Property Loan Calculator

175 words Calculator

Loan Summary

Monthly Payment:$6140.87
Total Interest:$842262.48
Total Payment:$1842262.48

Professional tool for commercial real estate financing. Calculate mortgage payments, amortization, and interest costs for business properties with precision.

Commercial Property Loan Calculator Documentation

What Is It?

This advanced calculator helps:

  • Evaluate commercial mortgage scenarios
  • Project cash flow for income properties
  • Compare different financing options
  • Analyze long-term investment viability

The Formula

Monthly Payment = P × (r(1+r)^n) / ((1+r)^n-1) 
Where: 
    P = Loan principal ($) 
    r = Monthly rate (annual rate ÷ 12) 
    n = Total payments (years × 12)

How To Use

  1. Input Loan Amount: Enter property value minus down payment
  2. Set Interest Rate: Current commercial mortgage rate (5-20yr terms)
  3. Select Term: Standard 5-30 year commercial loans
  4. Review Results:
    • Pie chart shows principal/interest ratio
    • Detailed payment breakdown
    • Mobile-responsive display

FAQ

Q: What’s the minimum commercial loan amount?
A: Typically $250,000+ for commercial mortgages

Q: How do balloon payments work?
A: Many commercial loans require lump-sum payment after 5-10 years

Q: Are rates fixed or variable?
A: Both options available; variable rates often have caps

Key Terms

  • DSCR (Debt Service Coverage Ratio): Minimum 1.20-1.25 required by most lenders
  • NOI (Net Operating Income): Gross income minus operating expenses
  • Cap Rate: NOI ÷ Property Value (measures ROI)
  • LTC (Loan-to-Cost): Loan amount ÷ total project cost
Calculator