Mortgage Calculator

Estimate Your Commercial Loan Payment in Seconds

Enter the following inputs to get your estimate:

• Loan Amount — the total amount you plan to borrow
• Interest Rate — current commercial mortgage rates typically range from 5.39% to 8.5% depending on loan type and property
• Amortization Period — most commercial loans amortize over 20 to 30 years
• Loan Term — commercial mortgages typically have terms of 5, 7, or 10 years, shorter than the amortization period
• Interest-Only Period (if applicable) — common on bridge loans and construction loans

The calculator will output your estimated monthly principal and interest payment. Note that taxes, insurance, and reserve escrows may add to your actual monthly cost.

Key Terms Every Commercial Borrower Should Know

Amortization Period The number of years your monthly payments are calculated over — typically 25 to 30 years for commercial real estate loans.

Loan Term When the loan actually matures — usually 5 to 10 years. Because the term is shorter than the amortization period, most commercial loans result in a balloon payment.

Balloon Payment The lump-sum balance remaining at the end of your loan term. On a $1 million loan with a 10-year term and 25-year amortization, the balloon payment is typically around 70% of the original balance.

DSCR — Debt Service Coverage Ratio Net Operating Income (NOI) divided by annual debt service. Most commercial lenders require a minimum DSCR of 1.25x to 1.35x. A higher DSCR means stronger cash flow relative to your mortgage payment.

LTV — Loan-to-Value The ratio of the loan amount to the property’s appraised value. Commercial lenders typically allow up to 75–80% LTV for multifamily and 65–75% for other commercial property types.

Interest-Only Loan A structure where you pay only interest each month with no principal reduction. Common in bridge loans and the early years of permanent financing.

Current Commercial Mortgage Rates (Updated 2026)

Commercial mortgage rates vary by loan type, property, and borrower strength. As of early 2026, typical rate ranges include:

• Bank loans: 6.0% – 8.0%
• CMBS loans: 6.0% – 8.5%
• SBA 504 loans: 5.5% – 7.0%
• Fannie Mae / Freddie Mac: 5.5% – 7.5%
• Bridge loans: 8.0% – 12.0%
• Hard money loans: 10.0% – 14.0%

Use these ranges as a starting point in the calculator above. Your actual rate will depend on your property type, leverage, location, and sponsor track record.

Why Use a Commercial Mortgage Calculator Before Applying?

Savvy investors and business owners use a commercial loan calculator before shopping for a property or refinancing their existing loan. It helps you:

• Quickly compare how different loan amounts and rates affect monthly cash flow
• Understand the impact of the amortization period length on your payment
• Estimate your balloon payment exposure at loan maturity
• Stress-test your DSCR at different interest rate scenarios
• Arrive at lender meetings better informed and better prepared

Ready to Move Beyond the Calculator?

The numbers are a starting point — but getting the best commercial mortgage requires expertise, lender relationships, and creative deal structuring. Financial Compound’s team has arranged financing for office buildings, multifamily properties, retail centers, industrial assets, and mixed-use developments across Los Angeles and the country.

Get a Free Commercial Loan Consultation →