Monthly Payment$0.00
Total Payments (over amortization)$0.00
Total Interest Paid$0.00
Effective Annual Rate (APR input)0.00%
Commercial Mortgage Calculator
commercial mortgage calculator Formula
Monthly rate r = (annual_rate / 100) / 12
n = amortization_years × 12
Monthly payment M = P × r / (1 − (1 + r)^−n)
Formula sources: Investopedia, Bankrate
Variables:
- Loan Amount (P): Principal borrowed for the commercial property.
- Annual Interest Rate (%): Nominal yearly interest; divided by 12 for monthly rate.
- Amortization Period (years): Number of years to fully amortize the loan.
- Monthly Payment (M): The scheduled monthly debt service (calculated).
Related Calculators
What is commercial mortgage calculator?
A commercial mortgage calculator computes the periodic debt service (usually monthly) a borrower must pay to amortize a commercial loan given the loan amount, interest rate and amortization schedule. It helps investors and borrowers compare financing scenarios, evaluate cash flow impact, and plan for interest and principal paydown.
This calculator is optimized for clarity: it shows monthly payment, total paid over the amortization, and total interest — plus the detailed steps so you can verify each part of the math.
How to Calculate commercial mortgage calculator (Example)
- Enter Loan Amount = $1,500,000, Annual Rate = 5.25%, Amortization = 25 years.
- Monthly rate r = 0.0525 / 12 = 0.004375; n = 25 × 12 = 300.
- Compute M = P × r / (1 − (1 + r)−n) → show computed monthly payment.
- Multiply M × n to get total payments and subtract P to get total interest.
Frequently Asked Questions (FAQ)
How accurate is this calculator? It uses standard amortizing-loan formulas and is accurate to cents for the inputs provided.
Does this include balloon payments or interest-only periods? No — this calculator assumes a fully amortizing loan. For balloons or IO periods use a dedicated calculator.
What if the interest rate is 0%? The calculator will handle zero-rate as a special case and compute principal / n.
Can I check a provided monthly payment for consistency? Yes — supply the expected monthly payment in the optional field to compare against the calculated payment. A tolerance (EPS) is used for small rounding differences.