Commercial Loan Amortization Calculator
Calculate commercial loan payments with full amortization schedule, balloon payment analysis, and interest-only options. Perfect for CRE financing, business loans, and commercial mortgages.
Balloon Payment Required
Term (10 yrs) is shorter than amortization (25 yrs). A balloon payment of $786,334 will be due at maturity.
Monthly Payment
$7,068
Annual Debt Service
$84,814
Total Interest
$634,469
Balloon Payment at Maturity
$786,334
6.44%
Including origination fees
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $7,068 | $1,234 | $5,833 | $998,766 |
| 2 | $7,068 | $1,242 | $5,826 | $997,524 |
| 3 | $7,068 | $1,249 | $5,819 | $996,275 |
| 4 | $7,068 | $1,256 | $5,812 | $995,019 |
| 5 | $7,068 | $1,264 | $5,804 | $993,755 |
| 6 | $7,068 | $1,271 | $5,797 | $992,484 |
| 7 | $7,068 | $1,278 | $5,789 | $991,206 |
| 8 | $7,068 | $1,286 | $5,782 | $989,920 |
| 9 | $7,068 | $1,293 | $5,775 | $988,627 |
| 10 | $7,068 | $1,301 | $5,767 | $987,326 |
| 11 | $7,068 | $1,308 | $5,759 | $986,018 |
| 12 | $7,068 | $1,316 | $5,752 | $984,702 |
Download the full schedule to see all 120 payments
Amortization is the process of paying off a loan through regular payments over time. A commercial loan amortization calculator generates a schedule showing how each payment is split between principal and interest, and how the loan balance decreases over time.
Formula:
Payment = P × [r(1+r)^n] / [(1+r)^n - 1]P = principal, r = periodic interest rate, n = number of payments. Commercial loans often have balloon payments when amortization exceeds term.
- 1
Enter the loan principal amount
- 2
Input the annual interest rate
- 3
Set the amortization period (typically 20-30 years)
- 4
Set the loan term (often 5-10 years for commercial)
- 5
View monthly payment and balloon payment amount
- 6
Download or print the full amortization schedule
- Understand exactly how much you'll pay over the loan life
- See how payments are allocated between principal and interest
- Plan for balloon payments at term end
- Evaluate refinancing timing based on remaining balance
- Tax planning - interest is typically deductible
- Planning commercial property acquisition financing
- Comparing different loan structures
- Preparing for balloon payment refinancing
- Tax planning for interest deductions
- Evaluating early payoff scenarios
- Presenting financing plans to investors
- •Longer amortization means lower payments but higher total interest
- •Interest-only periods can improve initial cash flow but build no equity
- •Consider rate locks in rising rate environments
- •Request assumable loan terms for easier property sale
Have questions about using this calculator? Check out our financial guides or contact us for help.
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Frequently Asked Questions
What is commercial loan amortization?
Commercial loan amortization is the process of paying off a business loan through regular payments over time. Each payment includes both principal and interest, with early payments being interest-heavy and later payments being principal-heavy. The amortization period determines how payments are calculated.
What's the difference between loan term and amortization period?
The loan term is how long until the loan matures (when full repayment is due). The amortization period is the time over which payments are calculated. When term < amortization, there's a balloon payment at maturity. Example: 10-year term with 25-year amortization means lower payments but a large balloon in year 10.
What is a balloon payment in commercial loans?
A balloon payment is the remaining loan balance due at maturity when the loan term is shorter than the amortization period. For example, a $1M loan with 10-year term and 25-year amortization might have a ~$700K balloon payment. Borrowers typically refinance before the balloon comes due.
Should I choose interest-only or fully amortizing payments?
Interest-only loans have lower monthly payments but build no equity and have larger balloon payments. They work well for short-term holds, value-add projects, or when cash flow is tight. Fully amortizing loans build equity faster but have higher payments. Consider your exit strategy and cash flow needs.
How does payment frequency affect total interest paid?
More frequent payments (monthly vs. quarterly) reduce total interest because principal is paid down faster. Monthly payments on a $1M loan at 7% over 25 years save approximately $15,000-20,000 in interest compared to quarterly payments. However, the difference is often minimal for shorter loan terms.