Simply fill out the fields below to get your monthly payment amount and amortization schedule for your commercial loan. If you don't know what interest rate to put, please check out our current commercial loan rates.
If you do not have an idea of what loan rate to put for this calculator, you can refer to the average rates below which are organized by loan type and property type.
Use the formula in the image below to calculate the monthly payment for a commercial loan. If using excel, you can calculate the monthly payment with the following formula: PMT(r, n, P).
A = Monthly payment amount
P = Loan Principal
r = Periodic interest rate
n = Number of loan payments
Typically, the term (or length) of a commercial mortgage can be anywhere from 1-10 years, with limited exceptions for longer terms on self-amortizing loans such as SBA loans (up to 25 years), insurance or Fannie Mae loans (up to 30 years), or FHA loans (up to 35 years for refinance or 40 years for construction to permanent financing). However, the amortization schedule is typically longer than the 1-10 year loan term in order to keep the monthly payments affordable for the borrower.
This depends heavily on whether or not the loan is interest-only or amortizing. If it is interest only, the monthly interest is the rate divided by the number of periods in a year (i.e. 12), then multiplied by the loan amount. If it is an amortizing loan, the calculations are slightly trickier, and we recommend using a calculator like the one provided on this page.
The interest paid on a commercial real estate loan will depend on the interest rate charged, the length of the term, and the amortization schedule. To see the total interest charged over time for any type of commercial loan, visit our calculator on this page and look at the "Total Interest" under the Payment Summary chart after inputting your loan amount, interest rate, and amortization.
Your required down payment will ultimately depend on the purchase price, property or business cash flow, and loan program selected. However, you should typically expect to put down at least 10-15% on owner-occupied properties, 20-25% on apartment properties, and 25-30% on other types of investment properties.
An EMI (equated monthly installment) is your monthly mortgage payment on a fixed-interest rate loan (i.e. the payment is the same every month). This can be easily estimated using the mortgage calculator on this page.
An amortization schedule sets out the timeline for when the principal of the loan will be repaid and how much principal and interest will be included in each of your month mortgage payments. Unless you are on an interest-only loan (only available for construction, bridge, or low-leverage properties on certain loan products), all commercial mortgages amortize.
This will vary drastically by product, but the following are good rules of thumb regarding personal credit: 1) Net Worth equal to the loan amount being requested 2) Post-Closing Liquidity of at least 10% of the loan amount being requested (after the required down payment), FICO score of at least 680 with no recent negative credit events (i.e. collections, judgments, liens, bankruptcies, short sales, foreclosures, etc.), some (but not all) programs may require experience with similar properties or that you live within driving distance to the property.
Note: The commercial mortgage calculators displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any calculation errors resulting from the use of these calculators.
Get a free commercial loan quote. This process does not affect your credit score.
What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
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If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
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We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
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