Free Tool
Commercial Mortgage Calculator
Calculate monthly payment, LTV, total interest, and balloon balance at maturity. Estimates only — not an offer to lend.
Loan Details
Schedule over which principal amortizes (e.g. 25 years).
Length until balloon payment is due (typically shorter than amortization).
Results & Method
Enter values and click Calculate to see results.
Estimates only. Not an offer or commitment to lend. Actual loan terms vary by lender, property type, and underwriting. Consult a licensed loan officer for a formal analysis.
How Commercial Mortgage Payments Are Calculated
Amortising Loans
Most commercial mortgages use a 25- or 30-year amortization schedule with a shorter loan term — typically 5, 7, or 10 years. Monthly payments are calculated using the standard P&I formula. At the end of the loan term, the remaining principal balance (the balloon) is due in full.
Example: $1,500,000 loan at 7.5% on a 25-year amortization with a 10-year term. Monthly P&I payment: $11,084.87. Balloon at year 10: $1,195,762.66 (remaining principal after 120 payments).
Interest-Only Loans
Interest-only commercial loans require only monthly interest payments during the loan term. No principal is repaid, so the full original loan amount is due as a balloon payment at maturity.
Example: $1,000,000 at 12% annual interest = $10,000 monthly interest payment. At maturity, the full $1,000,000 principal is due.
Balloon Balance
The balloon balance is the remaining principal after the loan term ends. It is calculated from the amortization schedule — not estimated. For interest-only loans, the balloon always equals the original principal. For amortising loans, holding loan amount, rate, and loan term constant, a longer amortization schedule generally lowers monthly payments and leaves a larger balloon at maturity.