Estimate your monthly payment, total interest, and full amortization schedule instantly. No signup required.
Total amount borrowed from the lender.
Fixed interest rate quoted by the lender.
Total repayment period (typically 5 to 25 years for commercial loans).
How often you make a payment.
Upfront lender fee as a percentage of loan amount (0 if none).
Enter 0 for fully amortizing. Enter years until balloon is due.
Monthly Payment
--
Total Interest Paid
--
Total Cost of Loan
--
| # | Payment | Principal | Interest | Balance |
|---|
This tool provides estimates only. Actual loan terms depend on lender underwriting, creditworthiness, and market conditions.
Payment Formula: Uses the standard amortizing loan formula: P = (r * PV) / (1 - (1 + r)^(-n)), where PV is the loan principal, r is the periodic interest rate (annual rate divided by payments per year), and n is the total number of payments.
Effective APR: Calculated by solving for the internal rate of return on net proceeds (loan amount minus origination fee) against the scheduled payment stream, then annualizing. This gives a more accurate picture of the true cost than the nominal rate alone.
Balloon Loans: Payments are calculated on the full amortization term, but the loan matures early. The outstanding balance at the balloon date is shown as a lump-sum final payment.
Payment Frequency: Changing to weekly or bi-weekly payments reduces total interest because principal is paid down faster, reducing the outstanding balance more quickly.
Commercial loan rates vary widely based on loan type, lender, borrower credit profile, and market conditions. As of 2024, rates for SBA 7(a) loans, conventional commercial mortgages, and term loans often range from roughly 6% to 12% per year. Always request a formal quote from your lender for accurate figures.
A balloon payment is a large lump-sum payment due at the end of a shorter loan term, even though payments were calculated on a longer amortization schedule. Commercial lenders use them to reduce long-term interest rate risk. Borrowers typically refinance or sell the property when the balloon comes due.
An origination fee is paid upfront but you still repay the full loan principal. This means you receive less money than you repay, making the true cost higher than the stated interest rate. The effective APR accounts for this fee and gives a standardized way to compare loan offers with different fee structures.
Estimates are for informational purposes only and do not constitute financial or lending advice.
Browse All Free SEO Tools