Commercial Mortgage Calculator

Commercial real estate loans are complex. Use our calculator to estimate total costs and compare different commercial mortgage offers.

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May 11, 2026

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Calculating commercial mortgage costs can be tricky, especially if you’re trying to compare multiple business loan offers.

Use our commercial real estate loan calculator to estimate monthly payments, interest costs, balloon payments and more.

How to use our commercial mortgage calculator

Step 1. Enter the loan details

Balloon payment. Select whether or not your loan has a balloon payment. Balloon payments are common with commercial mortgages. They allow you to make lower monthly payments during the loan term, but require a large lump sum at the end of the term to cover the remaining balance.
Property price. Enter the total cost of the commercial property you’re trying to buy or build. If you’re refinancing an existing property, put the remaining loan balance here instead.
Down payment. If you have to pay part of the loan upfront, enter it as a dollar amount or percentage of the loan here.
Interest rate. This is the yearly interest rate your lender charges you to borrow money. If you know the loan’s annual percentage rate (APR), use that here instead. If you're not sure, check out average commercial real estate loan rates for a quick estimate.
Loan term. This is how many years you’ll have to make payments for.
Amortization period (for balloon mortgages only). If your loan requires a balloon payment, enter the amortization period here. The amortization period should be longer than the loan term. Amortization periods for commercial balloon mortgages tend to range from 20 to 30 years, while loan terms typically last five to 10 years.
Payment type (for balloon mortgages only). Some commercial balloon mortgages allow you to make interest-only payments during the loan term, with the entire principal due at the end.

More about amortization

The amortization period is what the monthly payments are based off of for balloon mortgages. The loan term is the length that your loan lasts for. Because the amortization period is longer than the loan term, it allows for lower monthly payments. However, because the loan term ends before the amortization period, at the end of the term, you’ll have an outstanding amount that needs to be paid off all at once. This is the balloon payment.

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2. Review your results

Once you hit “calculate,” the tool will generate the following results:

Estimated monthly payment. The amount you pay your lender each month. It includes principal and interest, unless you selected the interest-only option. In that case, your payments will cover just the interest.
Balloon payment (if applicable). The lump-sum principal due at the end of the loan term.
Total payments made. The total amount you’d pay over the life of the loan. It includes principal, interest and any balloon payment.
Total interest paid. The overall cost of borrowing. If you entered an APR, this will also include any upfront fees, like closing costs or origination fees.
Amortization schedule. A detailed timeline showing how each payment is split between principal and interest, and how that changes over time. You can download your full schedule as a CSV file directly from the calculator for your records.

Feel free to adjust the numbers to explore different loan scenarios and hit the “reset” button to start fresh. This is especially helpful if you have a variable-rate commercial mortgage, since you can see how different rates affect payments and costs.

» MORE: DSCR loan calculator

What is a commercial mortgage?

Commercial mortgages, also referred to as commercial real estate loans, help small-business owners fund expensive real estate projects, like buying a warehouse or building a new restaurant. They can also be used to refinance existing commercial mortgages.

Because commercial property is so expensive, these loans provide a means for small-business owners to expand their physical footprint while preserving cash flow for other business needs.

» MORE: Best commercial real estate loans

How do commercial mortgages work?

Typically, you receive a lump sum of money to buy or refinance the property and pay it back slowly over a set period of time, with interest.

If you’re building a commercial property or doing a major renovation instead, you’ll typically receive funds in stages as the project meets key milestones. In this case, you’d only pay interest based on the amount drawn.

Key features:

Interest rates: Rates can be fixed or variable and typically range from 5% to 12.5%. Your individual rate will depend on factors like loan type, the property and your qualifications.
Terms: Repayment terms typically range from five to 10 years, but can go as high as 25 years.
Down payment: Many lenders require at least 20% of the cost of the property upfront.
Collateral: Like personal mortgages, commercial mortgages are usually self-secured by the property itself. This means that if you fail to pay back your loan, the lender may take over your property to recover its losses.
Fees: Common fees include closing costs, origination fees and underwriting fees. Many also have prepayment penalties, which are charged if you pay back your loan early or refinance it.
Balloon payment: Many commercial real estate loans come with a balloon payment. This is a final principal payment that’s due at the end of your loan’s term and helps keep monthly payments low. More on that below.

» MORE: Should you use a DSCR loan for your rental property?

How do balloon payments work?

Let’s say you have a commercial balloon mortgage with an amortization period of 25 years and a loan term of 10 years. You’ll make monthly payments as if you were paying it off over 25 years, even though the loan payments will stop after just 10 years.

These payments include both interest and principal (or just interest if you have an interest-only balloon mortgage). But because your loan ends after 10 years, you’ll have a large balance of unpaid principal due at the end. This is the balloon payment.

Because these final balloon payments are usually very large, this type of financing can be risky and is typically best-suited for small businesses with predictable future cash flows that can weather economic headwinds. Many borrowers refinance before their balloon payment is due.