A commercial real estate loan calculator estimates your monthly payment, total interest, and balloon balance from the purchase price, down payment, interest rate, and amortization term. Most CRE loans amortize over 20–25 years but balloon in 5–10, so the payment you make and the balance you owe at maturity are two different numbers — the calculator below shows both. Enter your figures, then get matched for real terms.
Commercial Real Estate Loan Calculator
Enter the purchase price, pick a loan program (it fills a typical down payment you can edit), then set the rate and term. Figures are illustrative estimates, not a quote — your real numbers depend on credit, DSCR, occupancy, and the lender program. The payment shown is principal and interest only; taxes, insurance, and fees are separate.
Illustrative estimate only, not a quote or offer of credit. Principal & interest only.
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How a Commercial Mortgage Payment Is Calculated
The monthly payment is standard loan amortization built from three inputs: the loan amount (purchase price minus down payment), the monthly interest rate (annual rate ÷ 12), and the number of payments (amortization years × 12). A $750,000 loan at 7.5% amortized over 25 years is about $5,542 a month. Two things make commercial different from a home mortgage: most CRE loans carry a balloon, and lenders cap the loan by DSCR, not just the purchase price.
Amortization vs. Balloon: Your Payment Isn’t Your Payoff
Commercial loans commonly amortize over 20–25 years — which keeps the monthly payment manageable — but mature in 5, 7, or 10 years. At maturity the remaining principal, the balloon, comes due in one lump sum. On that $750,000 loan, after 10 years you’d still owe roughly $590,000. Most owners refinance or sell before the balloon hits, so plan the exit when you take the loan, not when the balloon arrives. Set the balloon field in the calculator to see the lump sum for your scenario.
Down Payment by Loan Program
Your down payment is mostly a function of the program and how you use the property:
| Loan program | Typical down payment |
|---|---|
| SBA 504 (owner-occupied) | ~10% (50-40-10 structure) |
| SBA 7(a) (owner-occupied) | 10–20% |
| Conventional commercial | 20–35% |
| Investment / non-owner-occupied | 25–35% |
| Multifamily (5+ units) | 20–30% (agency often 20–25%) |
For the full breakdown by property type and how to put down less using equity, see how much down payment a commercial property loan requires.
DSCR: What Actually Sizes the Loan
Even when the price says you qualify for an 80% loan, a commercial lender only lends what the property’s cash flow supports. They divide net operating income by annual debt service to get the debt service coverage ratio (DSCR) and usually require at least 1.20–1.35x. If the rent doesn’t cover the payment by that margin, the loan shrinks — regardless of your down payment. Model the cash-flow side with the DSCR calculator, and see what lenders look for for the full underwriting checklist.
Typical Commercial Real Estate Rates and Terms (2026)
Use these ranges to model scenarios in the calculator, then confirm a real quote:
- Rates: roughly 6.5–9% for most conventional CRE; SBA 504 and agency multifamily price lower, bridge and hard-money higher.
- Amortization: commonly 20–25 years (up to 25–30 for SBA and multifamily).
- Term / balloon: 5, 7, or 10 years on most bank loans; SBA 504 and many agency loans are longer or fully amortizing.
- LTV: 65–80% typical, which sets your down payment.
See commercial real estate loan requirements and current commercial real estate loan options for program details.
Frequently Asked Questions
How do you calculate a commercial real estate loan payment?
Take the loan amount (purchase price minus down payment) and apply the standard amortization formula using the interest rate and amortization term. A $750,000 loan at 7.5% over 25 years is about $5,542 a month. The calculator above does this automatically, including the balloon balance most commercial loans leave after 5–10 years.
What is a balloon payment on a commercial mortgage?
Most commercial real estate loans amortize over 20–25 years but mature in 5–10, leaving a large remaining balance — the balloon — due at maturity. Borrowers typically refinance or sell before then. The calculator shows the balloon balance so you can plan for it.
What are typical commercial real estate loan rates in 2026?
Commercial real estate rates commonly run roughly 6.5% to 9% depending on program, property type, term, and borrower strength. SBA 504 and agency multifamily loans tend to price lower; bridge and hard-money loans price higher. Use a rate in that range to model scenarios, then confirm a real quote.
How much can you borrow on a commercial property?
Lenders size the loan to two limits: loan-to-value (typically 65–80%, which sets your down payment) and debt service coverage ratio (DSCR, usually 1.20–1.35x minimum). Whichever is more restrictive caps the loan, so a property with weak cash flow may borrow less than LTV alone would allow.
How accurate is a commercial real estate loan calculator?
It gives a close estimate of principal-and-interest payments and the balloon balance, but it is not a quote. Real terms depend on the lender program, DSCR, property type, credit, and reserves — and the payment excludes taxes, insurance, and fees. Use it to compare scenarios, then get matched for actual numbers.
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