Commercial Mortgage Calculator

A commercial mortgage calculator is a tool used to determine the monthly payment for a commercial mortgage loan. You can utilize the rates and calculator provided below to estimate your monthly payment. For an accurate quote tailored to your specific requirements, please contact us at 800-905-7777.[table id=13 /]

LOAN TYPES

Commercial Mortgage Calculator: Calculate Monthly Payment

To calculate the principal and interest for your commercial mortgage, use our commercial mortgage calculator in conjunction with your interest rate. The calculator requires the following inputs: loan length in years, loan amount, and interest rate. It will then provide the monthly payment, which covers only principal and interest. Keep in mind that many lenders include escrows for taxes, insurance, and replacement reserves in their monthly payments. If these escrows are required, you'll need to add those amounts to the monthly payment to obtain the true monthly cost of your loan. Using a commercial mortgage calculator beforehand can help you gauge affordability when shopping for a property or refinancing an existing loan. Feel free to use our mortgage loan calculator to estimate your monthly commercial mortgage payment based on various loan amounts and rate scenarios.When using a commercial mortgage calculator, business loan calculator, or any other loan calculator, it's crucial to understand how changes in different inputs affect the calculated monthly payment. Obviously, a higher interest rate results in a higher monthly payment. However, the amortization period is often overlooked. Some lenders amortize loans over 20 years, others over 25 years, and some over 30 years. A loan amortized over 30 years will have a significantly lower payment than a similar loan amortized over 20 or 25 years. You can conduct practice demonstrations below to illustrate this point. In many cases, the amortization period has a greater impact on the monthly payment than the interest rate. When comparing various commercial mortgage options, make sure to use a commercial mortgage calculator to assess all scenarios.For more information on using our commercial mortgage calculator to determine monthly payments and the factors commercial mortgage lenders consider when setting rates, please refer to our blog article titled "Using a Commercial Mortgage Calculator - How Lenders Determine Commercial Mortgage Rates." Additionally, the following explanations of terms may be helpful when discussing a loan transaction with a lender:Adjustable-Rate Mortgage (ARM): A loan with an interest rate that changes after a fixed rate period.Amortization Period: The number of years during which the loan is scheduled to be paid off through monthly payments.Balloon Payment: A final payment for the remaining principal of a loan, due after the loan term expires.Basis Point (BP): One-hundredth of one percent (0.01%).Cap: The maximum increase or decrease allowed for an adjustable mortgage rate at each periodic adjustment.Commercial Mortgage Calculator: An online tool that helps borrowers calculate the monthly payment for a commercial mortgage loan.Debt Service: The amount of money required to cover monthly or annual loan payments.Debt Service Coverage Ratio (DSCR): The net operating income divided by the mortgage payment. A DSCR greater than 1 indicates a cash-positive property, while a DSCR less than 1 indicates a property operating at a loss.Escrow: A monthly reserve to cover property expenses such as taxes, insurance, and replacement reserves.Fixed Rate Mortgage: A mortgage with an interest rate that remains constant throughout the loan term without adjustment.Interest Rate: The annual percentage rate charged by a lender for the loan.Interest Rate Cap: The maximum amount by which an interest rate can change at each scheduled adjustment.Loan-to-Value Ratio (LTV): The loan amount divided by the property's value, expressed as a percentage.Margin: An additional amount added to an index to determine the total rate charged by the lender.Maturity: The date when a loan expires and becomes due and payable.Non-Recourse: A loan granted without a personal guarantee from the borrower.Prepayment Penalty: A fee paid by a borrower if a loan is paid off before the scheduled term ends.Principal: The amount of money borrowed in a loan.Recourse: A loan personally guaranteed by the borrower.Refinance: Obtaining a new loan to pay off an existing loan balance.Self-Liquidating Mortgage: A loan that is fully paid off at the end of the scheduled term without a balloon payment.Term: The length of a mortgage before it matures.Yield Maintenance: A prepayment penalty that requires the borrower to pay the difference between the scheduled note rate and the current rate on similar-term U.S. Treasury Securities.