David Chen is a Certified Financial Analyst with over 10 years of experience in commercial real-estate finance and small-balance unit lending.
Use this free commercial unit mortgage calculator to estimate monthly payments, DSCR, and amortisation for owner-occupied or investor strata/units under $2M.
Commercial Unit Mortgage Calculator
Commercial Unit Mortgage Formula
Monthly Payment: M = P × r × (1+r)^n / [(1+r)^n – 1]
DSCR: NOI ÷ (Annual Principal & Interest)
Formula Sources: SBA | Fannie Mae Small Loans
Variables
- Purchase Price: Contract price for strata/office unit.
- Deposit: 20–30% typical for small-balance commercial.
- Amortisation: Usually 20–25 yrs; balloon at 5 or 7 yrs.
- NOI: Net operating income after expenses but before debt service.
Related Calculators
- SBA 7(a) Commercial Unit Calculator
- DSCR Calculator
- Cap Rate Calculator
- Commercial Refinance Calculator
What Is a Commercial Unit Mortgage Calculator?
It estimates monthly principal & interest for owner-occupied or investor strata/office units under $2M, then checks Debt-Service-Coverage-Ratio (DSCR) using NOI. Results reflect typical 20–30% deposit and 20-year amortisation with 5-year balloon.
How to Calculate Commercial Unit Mortgage (Example)
- Enter purchase price (e.g. $1.2M).
- Input deposit (e.g. 25%).
- Set amortisation (e.g. 20 yrs) and interest rate (e.g. 6.75%).
- Enter annual NOI (e.g. $90k) to check DSCR.
- Click “Calculate” for monthly payment and DSCR.
Frequently Asked Questions (FAQ)
Does this include balloon payment? No—calc shows full 20-year amortisation; balloon is due at lender option (usually yr 5 or 7).
Is DSCR > 1.25 required? Most lenders require 1.20–1.25 for small-balance units; result flags if below.
Are closing costs included? No—add 1–2% of loan amount separately.
Can I use this for retail condos? Yes—any strata unit under $2M NOI-based loan qualifies.