Commercial Mortgage Calculator

How Your Commercial Mortgage Payments Are Calculated

Our commercial mortgage calculator estimates your monthly commercial mortgage payments based on 4 major criteria. Loan amount, interest rate, loan term, and collateral affect your monthly mortgage payment and the total cost of the loan. Because interest rates and terms can vary depending on whether the property is an investment property or owner-occupied, we have a commercial mortgage calculator for each scenario to give you the most accurate estimates possible. 

Commercial Mortgage Amounts

Most commercial mortgage amounts range between $150,000 and $5,000,000. How much you’re able to borrow depends on your net operating income, the type of real estate you’re using as collateral, and your property’s value in comparison to the loan amount.

Commercial Mortgage Interest Rates

The interest rate on commercial mortgages is typically 4.25–6%. Rates vary based on how long you’ve been in business and your credit score. The higher your credit score, the easier it is to open the door to a lower interest rate.

Commercial Mortgage Terms

Most terms are 20–25 years and will vary by lender.

Let’s Get Specific (About Your Rates and Terms)

Instead of spending a day Googling rates that may or may not apply to you, take 15 minutes to find out the exact products and rates your business qualifies for. Our single application gives you access to 75+ lenders. That breaks down to an average of 12 seconds per lender. You won’t find a better investment… for your time. 

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Other Ingredients in Your Commercial Mortgage Payments

To properly estimate your commercial mortgage payments, you need to look at how the sausage gets made. In addition to your loan principal, potential fees may factor into your payments. 

Application Fees

You won’t find them here—Lendio never charges application fees. We can’t speak for everyone else, though. If you’re shopping around, make sure to ask if a lender charges application fees to avoid surprises during the application process. 

Origination Fees

Origination fees are charges a lender may have up front to offset the cost of opening a loan. When you’ve decided on a commercial mortgage, ask about the origination fees (often between 0.5 and 1% of the loan volume) so you know the full cost of your mortgage. 

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How You Can Reduce Loan Costs

We can’t wave a magic wand to make your commercial mortgage payments less expensive (we wish), but you can follow a few tips to prevent them from becoming more expensive.

• Make your minimum payment on time each month. This practice will keep your costs under control and boost your credit score (which will come in handy the next time you need business financing). 
• Need help remembering? Schedule those payments. Set calendar reminders or set up automatic payments so you never fall behind. 
• Early payment: find out how your lender feels about it. Some lenders may give you a modest discount for paying off a loan early. Others will charge you a penalty for paying early (because they lose out on interest payments). Ask your lender about any potential penalties and discounts that apply to your commercial mortgage.