Commercial Loan Payment Calculator
Calculate monthly debt service, model an interest-only period, and see the balloon balance you will need to refinance — with the full year-by-year amortization schedule behind it.
Calculate the loan payment
The loan
Leave at 0 for a fully amortizing loan.
When the remaining balance comes due.
Monthly payment
$10,113
Principal and interest, level across the term.
- Loan amount
- $1,600,000
- Down payment
- $400,000
- Annual debt service
- $121,357
- Total interest over term
- $2,040,711
Balloon at year 5
$1,497,776
Due in full at the end of year 5. Refinance or sale has to cover it — this is the number an exit plan is built around.
Amortization schedule
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $17,884 | $103,473 | $1,582,116 |
| 2 | $19,081 | $102,276 | $1,563,035 |
| 3 | $20,359 | $100,998 | $1,542,676 |
| 4 | $21,723 | $99,634 | $1,520,953 |
| 5 | $23,178 | $98,180 | $1,497,776 |
| 6 | $24,730 | $96,627 | $1,473,046 |
| 7 | $26,386 | $94,971 | $1,446,660 |
| 8 | $28,153 | $93,204 | $1,418,507 |
| 9 | $30,039 | $91,319 | $1,388,468 |
| 10 | $32,050 | $89,307 | $1,356,418 |
| 11 | $34,197 | $87,160 | $1,322,221 |
| 12 | $36,487 | $84,870 | $1,285,734 |
| 13 | $38,931 | $82,426 | $1,246,803 |
| 14 | $41,538 | $79,819 | $1,205,265 |
| 15 | $44,320 | $77,037 | $1,160,946 |
| 16 | $47,288 | $74,069 | $1,113,658 |
| 17 | $50,455 | $70,902 | $1,063,203 |
| 18 | $53,834 | $67,523 | $1,009,369 |
| 19 | $57,439 | $63,918 | $951,930 |
| 20 | $61,286 | $60,071 | $890,644 |
| 21 | $65,391 | $55,967 | $825,253 |
| 22 | $69,770 | $51,587 | $755,483 |
| 23 | $74,442 | $46,915 | $681,041 |
| 24 | $79,428 | $41,929 | $601,613 |
| 25 | $84,747 | $36,610 | $516,865 |
| 26 | $90,423 | $30,934 | $426,442 |
| 27 | $96,479 | $24,878 | $329,963 |
| 28 | $102,940 | $18,417 | $227,023 |
| 29 | $109,834 | $11,523 | $117,188 |
| 30 | $117,188 | $4,167 | $0 |
How to calculate commercial real estate loan payments
Calculating loan payments on a commercial acquisition starts with four inputs: the loan amount (purchase price minus your down payment), the interest rate, the amortization period, and whether the loan includes an interest-only period or a balloon payment. These determine both your monthly debt service obligation and the total cost of financing over the life of the loan.
A fully amortizing commercial loan spreads principal and interest evenly across the entire term — typically 20 to 30 years. Each monthly payment reduces your outstanding balance while covering interest charges. Early in the schedule, the majority of each payment goes toward interest. Over time, the principal portion increases as the balance declines.
Many commercial loans include an interest-only period — usually one to five years at the start — where you pay only interest with no principal reduction. This lowers your initial monthly obligation and improves early cash flow, which is particularly useful during stabilization or lease-up. After it ends, the loan converts to a fully amortizing schedule based on the remaining term, which makes the payment higher than it would have been on a loan that amortized from day one.
A balloon payment is the remaining balance coming due before the amortization term completes. A loan with a 30-year amortization but a 5-year balloon requires you to refinance or pay off the balance at the end of year five. Your balloon date is the fixed point an exit or refinance plan has to be built around.
What this loan payment calculator includes
Full amortization schedule
Year-by-year breakdown of principal paid, interest paid, and remaining balance across the entire loan term.
Interest-only modeling
Enter an interest-only period and the calculator re-amortizes over the remaining term — and shows the higher payment that follows it.
Balloon payment calculation
Specify when the balloon is due and see the exact remaining balance you will need to refinance or pay off.
Monthly debt service
Calculate your monthly payment from purchase price, down payment, interest rate, and amortization term.
Flexible down payment input
Enter the down payment as a dollar amount or a percentage of purchase price — the calculator converts between both.
Total interest paid
See the full cost of interest over the life of the loan, so you can weigh the true cost of financing.
Example: a $2,000,000 acquisition at 20% down
Sample inputs
- Purchase price
- $2,000,000
- Down payment
- $400,000 (20%)
- Loan amount
- $1,600,000
- Interest rate
- 6.50%
- Amortization
- 30 years
- Balloon
- Year 5
The monthly payment on a $1,600,000 loan at 6.5% over 30 years is $10,113, or $121,356 a year. That annual figure is what a DSCR calculation divides NOI by, which is why the payment and the coverage ratio are really one question asked twice.
With a five-year balloon, the balance outstanding at the end of year five is $1,497,776. Over those five years roughly $102,224 of principal is paid down while $504,561 goes to interest — on a 30-year schedule, the first five years are almost entirely interest, and the balance has barely moved.
That is the point of watching both numbers. The payment defines your monthly obligation; the balloon defines your refinance timeline, and on a long amortization it will be close to what you borrowed.
Frequently asked questions
What is a loan payment in commercial real estate?
A loan payment is the monthly amount you owe your lender, consisting of principal (the amount that reduces your loan balance) and interest (the cost of borrowing). In commercial real estate, loan payments are a key component of your monthly obligations and directly impact your property's cash flow and debt service coverage ratio.
How do you calculate monthly loan payments?
Monthly loan payments are calculated from the loan amount, interest rate, and amortization period. The standard formula uses the present value of an annuity to determine a fixed monthly payment covering both principal and interest over the term. The calculator above handles this automatically — enter your purchase price, down payment, rate, and term.
What is an interest-only loan in commercial real estate?
An interest-only commercial loan requires you to pay only the interest portion for a set period, typically one to five years, before converting to a fully amortizing schedule. This lowers initial monthly payments, which can help during stabilization or renovation. The tradeoff is that no principal is paid down during the interest-only period — and the payment afterwards is higher than it would have been on a loan that amortized from day one.
What is a balloon payment?
A balloon payment is the remaining loan balance that comes due at a specified date before the full amortization term is complete. A 30-year amortization with a 5-year balloon means your monthly payments are calculated as if the loan runs for 30 years, but the entire remaining balance must be paid or refinanced after five years. Most commercial real estate loans include balloon provisions.
How does amortization work on a commercial real estate loan?
Amortization is the process of paying down your loan balance through scheduled monthly payments over a set period. In the early years, most of your payment goes toward interest. As the balance decreases, a larger portion of each payment goes toward principal. The schedule below the calculator shows this breakdown year by year.
What is a good DSCR for a commercial real estate loan?
Most commercial real estate lenders require a debt service coverage ratio of at least 1.20x to 1.25x, meaning the property's net operating income is 20–25% higher than annual debt service. A DSCR of 1.00x means the property barely covers its debt payments, and anything below indicates negative cash flow. Calculate your monthly payment here, then compare it to NOI in the DSCR calculator.
More commercial real estate calculators
Cash-on-cash calculator
Year-one yield on the cash you put in, and whether the leverage is helping.
DSCR calculator
Check the payment above against NOI, and find the loan your income supports.
Cap rate calculator
The unleveraged return the loan sits on top of.
Property value calculator
Price per SF for building and land, plus annual rent potential.
TI amortization calculator
Amortize tenant improvements across the lease term.
Lease commission calculator
Leasing commissions with stair-step rents and broker splits.
Lease comparison calculator
Compare proposals on net effective rent and NPV.
A payment is fixed. What has to cover it is not.
DealWise AI projects debt service against NOI derived from your actual rent roll, month by month across the hold — so you see the year coverage is tightest, and what a rollover does to it.