Commercial Mortgage Calculator
Commercial mortgages usually calculate the payment over a long amortization period but come due much sooner, leaving a balloon to repay or refinance. Enter both periods to see the payment and the balance at the end of the term.
Enter your figures below. Results update as you type.
Monthly payment$6,505.26
- Loan amount
- $900,000.00
- Loan-to-value
- 75%
- Balloon due after 10 years
- $712,622.01
- Interest paid before the balloon
- $593,253.42
- Principal repaid before the balloon
- $187,377.99
- Balance
How the Commercial Mortgage calculation works
Payment uses the amortization period; balloon = balance left after the loan term
A $1,200,000 property with 25% down is a $900,000 loan. At 7.25% amortized over 25 years the payment is $6,505.26. After a 10-year term, $712,622 is still owed and falls due as a balloon.
Frequently asked questions
What is a balloon payment on a commercial loan?
The balance still owed when the loan term ends. Because payments are sized for a longer amortization period, the loan is not fully repaid by then, and the remainder must be paid off or refinanced.
How much down payment does a commercial mortgage need?
Typically 20% to 30% of the price for a conventional commercial loan. SBA 504 and 7(a) loans for owner-occupied property can require as little as 10%.
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