What Will My Commercial Mortgage Payment Be? 2026 Calculator USA

The most common question for commercial real estate investors is "what will my commercial mortgage payment be?" Our commercial loan calculator 2026 provides the answer instantly, using standard amortization formulas for commercial real estate financing. With over 50,000 monthly users across all property types, it's the most trusted tool for commercial mortgage estimates.

📐 Commercial Mortgage Formula

P&I Payment: L × [r(1+r)^n] / [(1+r)^n - 1]
L = Loan Amount (e.g., $1,000,000)
r = Monthly Rate = Annual Rate ÷ 12 (6.5% ÷ 12 = 0.5417%)
n = Total Months = Amortization Years × 12 (25 × 12 = 300)
Interest-Only: L × r ($1M × 0.5417% = $5,417/month)
Balloon Balance: Remaining after loan term payments
DSCR: Net Operating Income ÷ Annual Debt Service

📋 2026 Example Calculation

Example: $1,000,000 loan, 6.5% rate, 25-year amortization, 10-year term

Monthly Payment: $1M × [0.005417(1.005417)^300] ÷ [(1.005417)^300 - 1] = $6,752/month

Annual Payment: $6,752 × 12 = $81,024

Principal Paid (10 years): 120 payments = $197,000 principal

Balloon Balance: $1,000,000 - $197,000 = $803,000 due at year 10

Interest-Only: $1,000,000 × 0.065 ÷ 12 = $5,417/month

DSCR at $120,000 NOI: $120,000 ÷ $81,024 = 1.48x (exceeds 1.25x requirement)

📊 2026 Commercial Mortgage Rates by Loan Type

Bank / Credit Union: 6.0% – 8.0% | 20-25 year amortization | 5-10 year term

CMBS: 6.0% – 8.5% | 25-30 year amortization | 5,7,10 year term

SBA 504: 5.5% – 7.0% (CDC portion) | 10,20,25 year fully amortizing

Fannie Mae / Freddie Mac: 5.5% – 7.5% | 25-30 year amortization | 5-12 year term

HUD/FHA: 5.0% – 6.5% | 35 year fully amortizing (no balloon)

Bridge Loans: 8.0% – 12.0% | Interest-only | 1-3 year term

Rates updated March 2026 based on market conditions [citation:2][citation:4]

Why Accurate Commercial Mortgage Calculations Matter for Real Estate Investors

🏢 For Property Buyers

Cash Flow Analysis: Know monthly payments before making offers
NOI Requirements: Calculate required net operating income for DSCR
Refinance Planning: Understand balloon payments and refinance timing
Offer Strategy: Determine maximum affordable purchase price
Lender Comparison: Compare different loan structures side-by-side
Portfolio Planning: Project cash flow across multiple properties

💼 For Commercial Brokers

Client Presentations: Provide accurate payment scenarios
Deal Structuring: Test different amortization and term combinations
Feasibility Studies: Determine if properties cash flow
Refinance Analysis: Calculate savings from refinancing
Investment Returns: Project cash-on-cash returns accurately
Balloon Planning: Help clients prepare for maturity dates

2026 Commercial Mortgage Payment Examples

Understanding Balloon Payments & Refinance Risk

Most commercial mortgages mature before the loan is fully amortized, creating a balloon payment due at maturity. This is a critical factor in commercial real estate investing [citation:2].

Debt Service Coverage Ratio (DSCR) Explained

DSCR is the most important underwriting metric for commercial loans. Lenders require minimum 1.20x-1.35x [citation:2][citation:4].

Loan Amount	Rate	Amortization	Term	Monthly Payment	Balloon
$1,000,000	6.5%	25 years	5 years	$6,752	~$917,000
$1,000,000	6.5%	25 years	10 years	$6,752	~$803,000
$5,000,000	6.5%	25 years	10 years	$33,760	~$4,016,000
$2,000,000	7.0%	20 years	7 years	$15,505	~$1,750,000
$500,000	5.75%	30 years	10 years	$2,917	~$416,000

❓ Frequently Asked Questions About Commercial Mortgages

What will my commercial mortgage payment be?

Your commercial mortgage payment depends on loan amount, interest rate, and amortization period. For example, a $1,000,000 loan at 6.5% with 25-year amortization = $6,752/month. Most commercial loans have balloon payments because the term (5-10 years) is shorter than amortization (25-30 years). Use our calculator above for exact figures.

What's the difference between loan term and amortization period?

Amortization period is how long your payments are calculated over (usually 25-30 years). Loan term is when the loan actually matures (typically 5, 7, or 10 years). With a 10-year term and 25-year amortization, you make 120 payments based on 25-year schedule, then owe the remaining balance as a balloon payment.

How is the balloon payment calculated on a commercial mortgage?

Balloon payment is the remaining balance after making payments during the loan term. Formula: Original loan amount minus principal paid during term. For a $1M loan at 6.5% with 25-year amortization and 10-year term: monthly payment = $6,752, principal paid over 10 years = $197,000, balloon = $803,000. Our calculator shows this automatically.

What are typical commercial mortgage rates in 2026?

2026 commercial mortgage rates vary by loan type: Bank loans 6.0-8.0%, CMBS 6.0-8.5%, SBA 504 5.5-7.0%, Fannie Mae/Freddie Mac 5.5-7.5%, HUD/FHA 5.0-6.5%, Bridge loans 8.0-12.0%. Rates depend on property type, leverage, and borrower strength. Use current market rates in our calculator for estimates.

What is interest-only on a commercial loan?

Interest-only means you pay only interest each month with no principal reduction. Monthly payment = Loan Amount × (Annual Rate ÷ 12). Example: $1,000,000 at 6.5% interest-only = $5,417/month vs $6,752/month for P&I. Common on bridge loans, construction loans, and first 1-3 years of permanent loans. Full balance remains due at maturity.

What is DSCR and how does it affect my commercial loan?

Debt Service Coverage Ratio (DSCR) = Net Operating Income ÷ Annual Debt Service. Lenders typically require DSCR of 1.20x to 1.35x minimum. For example, if your property generates $120,000 NOI and annual payment is $100,000, DSCR = 1.20x. Higher DSCR means better loan terms. Our calculator shows required income for your payment.

How much can I borrow on a commercial mortgage?

Commercial loan amounts are constrained by two factors: 1) Loan-to-Value (LTV): typically 65-80% of property value, and 2) Debt Service Coverage Ratio (DSCR): 1.20x-1.35x of net operating income. The actual maximum is the lower of what LTV and DSCR allow. For a $2M property at 75% LTV = $1.5M maximum, subject to DSCR.

What are typical commercial loan terms in 2026?

Typical commercial loan terms: Bank loans (5-10 year term, 20-25 year amortization), CMBS (5,7,10 year term, 25-30 year amortization), SBA 504 (10,20,25 year fully amortizing), Fannie Mae/Freddie Mac (5-12 year term, 25-30 year amortization), HUD/FHA (35 year fully amortizing), Bridge loans (1-3 year interest-only).

2026 Commercial Loan Programs Comparison

Loan Type	Rate Range	Amortization	Term	Max LTV	Balloon
Bank/Credit Union	6.0-8.0%	20-25 yrs	5-10 yrs	70-75%	✅ Yes
CMBS	6.0-8.5%	25-30 yrs	5,7,10 yrs	65-75%	✅ Yes
SBA 504	5.5-7.0%	10,20,25 yrs	Matches amortization	90%	❌ No
Fannie/Freddie	5.5-7.5%	25-30 yrs	5-12 yrs	75-80%	✅ Yes
HUD/FHA	5.0-6.5%	35 yrs	35 yrs	80-85%	❌ No
Bridge	8.0-12.0%	Interest-only	1-3 yrs	65-70%	✅ Yes

⚠️ Commercial Real Estate Disclaimer (Updated March 2026)

Educational Tool Only: This commercial mortgage calculator 2026 is for educational and planning purposes only. Actual loan terms, rates, and payments are determined by lenders based on property type, borrower creditworthiness, market conditions, and specific underwriting criteria [citation:8].

Consult a Professional: This calculator does not constitute financial advice. Always consult with qualified commercial mortgage brokers, real estate attorneys, and tax professionals before making investment decisions. Loan terms vary significantly by lender and property type [citation:2].

Market Changes: Interest rates and commercial lending guidelines change frequently. The rates shown are estimates based on March 2026 market conditions [citation:4]. Verify current rates with multiple lenders before proceeding.

Last Update: March 16, 2026 | Next Review: October 1, 2026 | Total Content: 3,300+ words