Commercial Mortgage Calculator

Loans from $1 Million to $25 Million+

A commercial mortgage calculator is used to calculate the monthly payment on a commercial mortgage loan. Use can use the rates and calculator below to estimate your monthly payment. For an exact quote based on your specific needs, please call us at 877-548-9454 or click Get Free Quote.

Commercial Mortgage Rates - Rates updated December 7th, 2022

Loan Product Rates (start as low as) LTV
Apartment Loan Rates (Over $6,000,000) 5.42% Up to 80% Get Free Quote
Apartment Loan Rates (Under $6,000,000) 5.52% Up to 80% Get Free Quote
Business Real Estate Loan Rates 5.67% Up to 90% Get Free Quote
Commercial Mortgage Rates 5.77% Up to 75% Get Free Quote

Commercial Mortgage Calculator To Calculate Monthly Payment

Use our commercial mortgage calculator along with your rate to calculate principal and interest. The commercial mortgage calculator will require the following inputs: length of loan in years, loan amount and interest rate. The commercial mortgage calculator will output the monthly payment to be paid. The monthly payment covers principal and interest only. Many lenders escrow for taxes, insurance and replacement reserves. If these escrows are required, you will need to add those amounts to the monthly payment in order to calculate the true monthly cost of your loan. Many borrowers find it helpful to use a commercial mortgage calculator in advance of shopping for a property or refinancing their existing loan to get an idea as to what they can afford. You may use our mortgage loan calculator to estimate your monthly commercial mortgage payment for a variety of potential loan amount and rate scenarios.

When using a commercial mortgage calculator, business loan calculator, or any other loan calculator it is important to understand how changes in the various inputs affect the calculated monthly payment.  Obviously, the higher the interest rate, the higher the monthly payment.  Often overlooked is the amortization period.  Some lenders amortize their loans over 20 years, others over 25 years, and still others over 30 years.  A loan amortized over 30 years will have a much lower payment than a similar loan amortized over 20 or 25 years.  You can do some practice demonstrations below to illustrate this point.  Often, the amortization period has a larger effect on the monthly payment than the rate.  When you are shopping for a commercial mortgage, and are comparing various options, make sure to use a commercial mortgage calculator to compare all scenarios.

Commercial Mortgage Loan Benefits

rates start as low as 5.42% (Rates updated December 7th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on apartments, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Recent Closings

For more information on using our commercial mortgage calculator to determine a monthly payment and various factors that commercial mortgage lenders use to determine their rates, please see our blog article Using a Commercial Mortgage Calculator - How Lenders Determine Commercial Mortgage Rates . In addition, the following explanation of terms may be helpful when discussing a loan transaction with a lender:


ADJUSTABLE RATE MORTGAGE – also called an “ARM” loan, is 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 down by the act of making monthly payments.

BALLOON PAYMENT – a final payment for the outstanding principal of a loan, due after the expiration of the loan term.

BASIS POINT (BP) – 1/100th of 1%.  One basis point equals 0.01%. 

CAP – the amount by which an adjustable mortgage rate may increase (or decrease) at each periodic adjustment.

COMMERCIAL MORTGAGE CALCULATOR – an online tool to help borrowers calculate the monthly payment on a commercial mortgage loan. 

DEBT SERVICE
 – the amount of money required to cover monthly or annual loan payments.              

DEBT SERVICE COVERAGE RATIO – the net operating income divided by the mortgage payment.  A DSCR greater than 1 shows a cash positive property.  A DSCR less than 1 indicates that the property operates at a loss.

ESCROW – a monthly reserve to pay property expenses as they become due.  Examples include: taxes, insurance, and replacement reserves.

FIXED RATE MORTGAGE
 – a mortgage with an interest rate that stays constant for the term of the loan and does not adjust.

INTEREST RATE – the annual percentage rate charged by a lender for the loan.

INTEREST RATE CAP – the maximum that an interest rate may change at the scheduled periodic adjustment.

LOAN–TO–VALUE RATIO (LTV)
 – the loan amount divided by the property’s value, expressed as a percentage.

MARGIN
 – an 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 made without a personal guarantee from the borrower.

PREPAYMENT PENALTY
 – a fee paid by a borrower if a loan is paid off before the end of the scheduled term.

PRINCIPAL – the amount of the loan borrowed.

RECOURSE – a loan guaranteed personally by the borrower.

REFINANCE – a new loan taken out to pay off an existing loan balance.

SELF LIQUIDATING MORTGAGE – a loan that is completely paid off at the end of the scheduled term, without a balloon payment.

TERM
 – the length of a mortgage before the loan is set to mature.

YIELD MAINTENANCE
 – a prepayment penalty which requires the borrower to pay the difference between the scheduled note rate and the current rate on like term U.S. Treasury Securities.