Mortgage Calculator Refinance

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Commercial Real Estate Loan Calculator

Estimate monthly payments and balloon balances for commercial mortgages.

Payment Summary

Monthly Principal & Interest $0.00
Total Interest Paid (Over Term) $0.00
Balloon Payment Due $0.00
Total Cost of Loan $0.00

Understanding Commercial Real Estate Loans

Commercial real estate (CRE) loans differ significantly from residential mortgages. While a home loan is typically fully amortized over 30 years, commercial loans often feature shorter terms (5 to 10 years) with payments calculated over a longer amortization period (20 to 25 years). This structure results in a "balloon payment" at the end of the term.

Key Commercial Loan Metrics

  • Amortization vs. Term: The amortization determines your monthly payment amount, while the term determines when the loan must be paid in full or refinanced.
  • LTV (Loan-to-Value): Most commercial lenders require a lower LTV than residential, typically between 65% and 80%.
  • DSCR (Debt Service Coverage Ratio): Lenders evaluate the property's ability to cover the debt. A DSCR of 1.25x or higher is usually required (Net Operating Income / Total Debt Service).

Calculation Example

If you borrow $1,000,000 at 6.5% interest with a 25-year amortization and a 10-year term:

Monthly Payment: Your monthly debt service would be approximately $6,752.08.

Balloon Payment: After 10 years (120 payments), you would still owe a lump sum of approximately $783,165.75, which would require refinancing or sale of the property.

Common Commercial Loan Types

Lenders offer various structures depending on the asset class (Office, Retail, Industrial, or Multifamily):

Loan Type Typical Rate Best For
SBA 504 Competitive/Fixed Owner-Occupied Business
CMBS (Conduit) Market Rates Income Producing Properties
Bridge Loan Higher/Floating Short-term value-add
function calculateCommercialLoan() { // Inputs var principal = parseFloat(document.getElementById('cre_amount').value); var annualRate = parseFloat(document.getElementById('cre_rate').value); var amortYears = parseFloat(document.getElementById('cre_amort').value); var termYears = parseFloat(document.getElementById('cre_term').value); // Validation if (isNaN(principal) || isNaN(annualRate) || isNaN(amortYears) || isNaN(termYears) || principal amortization) if (totalTermMonths >= totalAmortMonths) { balloonBalance = 0; } // Total interest and total cost over the actual loan term var totalPaymentsMade = monthlyPayment * totalTermMonths; var principalPaid = principal – (balloonBalance > 0 ? balloonBalance : 0); var totalInterest = totalPaymentsMade – principalPaid; var totalLoanCost = totalPaymentsMade + (balloonBalance > 0 ? balloonBalance : 0); // Update UI document.getElementById('res_monthly').innerText = formatCurrency(monthlyPayment); document.getElementById('res_interest').innerText = formatCurrency(totalInterest); document.getElementById('res_balloon').innerText = formatCurrency(balloonBalance); document.getElementById('res_total').innerText = formatCurrency(totalLoanCost); } function formatCurrency(num) { if (num < 0) num = 0; return '$' + num.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); } // Initial calculation calculateCommercialLoan();

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