Commercial loan calculator
Estimate commercial mortgage payments with a balloon, an interest-only period, DSCR and LTV, plus a full payment schedule.
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Estimates only, not financial advice. Actual rates, taxes, insurance, PMI and lender terms vary. Talk to a licensed lender before making decisions.
Payment schedule
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The amortizing payment uses the standard formula over the amortization period. Interest-only payments are balance ร rate รท 12. When the interest-only period ends, the loan amortizes over the full amortization period you entered (it is not shortened by the interest-only months), so the payment is the same as a loan of that amortization starting at that point. DSCR is NOI divided by 12 months of the amortizing payment (and of the interest-only payment, if any). The balloon is the remaining balance after the last payment of the loan term.
Frequently asked questions
What is DSCR?
Debt service coverage ratio = net operating income รท annual debt service. Many commercial lenders look for 1.20โ1.25x or higher. Below 1.0x the property does not cover its loan payments.
What is a balloon payment?
Commercial loans often amortize over 20โ30 years but come due in 5โ10 years. The remaining balance at the end of the loan term is the balloon, which is usually refinanced or paid off.
How does the interest-only period work here?
During the interest-only months you pay only interest, so the balance does not fall. After that, the loan amortizes over the full amortization period you entered, and the balloon is the balance left at the end of the term.
What LTV do lenders allow?
Loan-to-value = loan รท property value. Commercial lenders commonly cap LTV around 65โ80% depending on the property type. Estimates only, not financial advice.