What this commercial mortgage calculator shows
Commercial loans often separate the loan term from the amortization period. The amortization period drives the scheduled payment, while the shorter term determines when the remaining balance may come due. That remaining balance is commonly called a balloon payment.
This calculator estimates level monthly principal-and-interest payments. It does not include taxes, insurance, reserves, lender fees, closing costs, or variable-rate changes.
How to use the results
- Use annual debt service when estimating DSCR.
- Plan for the balloon balance before maturity rather than assuming a refinance will be available.
- Compare multiple rate and amortization scenarios before requesting lender terms.
The CFPB explains that balloon loans use payments calculated over a longer period even though the remaining balance is due at the end of a shorter term. Commercial programs and underwriting standards vary by lender.
Frequently asked questions
Does this include taxes and insurance?
No. The estimate covers principal and interest only.
Why is there a balloon balance?
A balloon remains when the loan term is shorter than the amortization period.
Is the displayed rate a quote?
No. Enter a rate you want to model; the result is not a lending offer.