Commercial Mortgage Calculator
Calculate monthly payments for a commercial mortgage loan. Enter loan amount, interest rate, and term to get the monthly payment, total interest, and amortization schedule.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator determines the monthly payment for a commercial mortgage using the standard amortization formula. It also shows the total interest paid and a 12-month amortization schedule.
- Enter Loan Amount ($) – The total amount you are borrowing (e.g., 500000).
- Enter Annual Interest Rate (%) – The yearly interest rate as a percentage (e.g., 5.5 for 5.5%).
- Enter Loan Term (years) – The duration of the loan (e.g., 25).
- Enter Amortization Period (years, optional) – If different from the loan term, specify the amortization period (e.g., 30). Leave blank to use the loan term.
- Click Calculate or press Enter to see results.
- Monthly Payment – Fixed payment due each month.
- Total Interest – Total interest paid over the amortization period.
- Total Payment – Sum of principal and interest.
- Amortization Schedule – Shows the first 12 months: payment, principal, interest, and remaining balance.
Outputs explained:
Note: All monetary values are in US dollars. Inputs must be positive numbers. The amortization period defaults to the loan term if left blank.
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Frequently Asked Questions
A commercial mortgage is a loan secured by commercial property, such as office buildings, retail spaces, or industrial properties. It is used to purchase or refinance commercial real estate.
The monthly payment is calculated using the standard amortization formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ], where P is the loan amount, i is the monthly interest rate, and n is the total number of payments.
The loan term is the duration of the loan agreement, while the amortization period is the length of time over which the loan is repaid. A longer amortization period results in lower monthly payments but more total interest.
