Commercial Mortgage Calculator
Calculate payments, balloon balance, DSCR, and refinance risk for office, retail, industrial, and multifamily commercial real estate loans.
Typical LTV, rate premiums, and DSCR for your $1,500,000 property across commercial property types.
| Property Type | Max LTV | Rate | Max Loan | Monthly Pmt | DSCR at NOI $90,000 |
|---|---|---|---|---|---|
| Multifamily (5+ units) (selected) | 80% | 7.5% | $1.2M | $8,391 | 0.89x |
| Industrial / Warehouse | 70% | 7.8% | $1.1M | $7,931 | 0.95x |
| Retail / Strip Mall | 70% | 8.0% | $1.1M | $8,104 | 0.93x |
| Office | 65% | 8.3% | $975K | $7,687 | 0.98x |
| Mixed Use | 75% | 7.8% | $1.1M | $8,060 | 0.93x |
| Hospitality / Hotel | 60% | 8.8% | $900K | $7,953 | 0.94x |
Balloon balance remaining at different term and amortization combinations for your $1,050,000 loan at 7.5%.
| Term | Amortization | Monthly Pmt | Balloon Balance | LTV at Balloon | % Paid Down |
|---|---|---|---|---|---|
| 5 yr | 25 yr | $7,759 | $963,192 | 64.2% | 8.3% |
| 5 yr | 30 yr | $7,342 | $993,483 | 66.2% | 5.4% |
| 7 yr | 25 yr | $7,759 | $918,302 | 61.2% | 12.5% |
| 7 yr | 30 yr | $7,342 | $964,257 | 64.3% | 8.2% |
| 10 yr (current) | 25 yr | $7,759 | $837,034 | 55.8% | 20.3% |
| 10 yr (current) | 30 yr | $7,342 | $911,347 | 60.8% | 13.2% |
How to Use the Commercial Mortgage Calculator
Commercial real estate financing works differently from residential mortgages. The most important distinctions are: shorter loan terms with balloon payments, DSCR underwriting, and higher down payment requirements. This calculator handles all three.
Quick Calculator
Enter your Property Value, Loan Amount, Interest Rate, Loan Term (typically 5, 7, or 10 years), and Amortization Period (typically 25 or 30 years). The result shows your monthly payment, the LTV ratio, annual debt service, and the crucial balloon payment amount due at term end.
Advanced — Commercial Analysis
Property Type Analysis shows typical LTV limits, rate premiums, and DSCR for your dollar amount across six commercial property types. DSCR Check enters your NOI to see if the loan qualifies (1.25x minimum) and calculates maximum loan size. Rate Scenarios shows payment and DSCR impact at ±0.5% and ±1% rate changes.
Pro — Professional Analysis
Balloon Planning compares all combinations of 5, 7, and 10-year terms with 25 and 30-year amortization to show the balloon balance and LTV in each case. Cap Rate vs Cash-on-Cash analyzes investor return metrics. Refinance Risk models what happens at the balloon date — projected LTV, DSCR, and payment changes if you need to refinance at higher rates.
Key Formulas
Balloon Balance = Loan × (1+r)^termN − Payment × [(1+r)^termN − 1] / r
DSCR = Annual NOI / Annual Debt Service
Cap Rate = Annual NOI / Property Value × 100
Cash-on-Cash = Annual Cash Flow / Total Equity Invested × 100
Where n = amortization months (e.g., 300 for 25 years), termN = loan term months (e.g., 120 for 10 years), and r = monthly interest rate. The balloon balance is what remains after making regular payments for the loan term using the longer amortization schedule.
Worked Example: Multifamily Apartment Complex
Atlantic Capital Partners — 12-Unit Apartment Acquisition
A real estate partnership is acquiring a 12-unit apartment building in Charlotte, NC for $1,800,000 with a 75% LTV commercial loan.
| Purchase Price | $1,800,000 |
| Down Payment (25%) | $450,000 |
| Loan Amount | $1,350,000 |
| Interest Rate | 7.25% |
| Loan Term | 10 years |
| Amortization | 30 years |
| Monthly Payment | $9,206 |
| Annual Debt Service | $110,472 |
| Annual NOI | $144,000 |
| DSCR | 1.30x (acceptable) |
| Balloon at Year 10 | ~$1,195,000 |
| Cap Rate | 8.0% |
| Cash-on-Cash Return | 7.4% |
The partnership satisfies the 1.25x DSCR minimum. At year 10, they'll need to refinance ~$1.195M at prevailing rates. If rates are higher, their DSCR will compress — requiring higher NOI growth or additional equity paydown to qualify.