Commercial Loan Calculator
Estimate payments on a commercial or business loan, including the full amortization schedule.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Solve for
- Monthly payment
- Loan amount
- $250,000
- Interest rate (APR)
- 8.50%
- Loan term
- 10 years
- Extra monthly payment
- $0
$250,000 at 8.50% over 10 years
- Loan amount$250,000
- Monthly payment$3,099.64
- Total interest$121,957
How the monthly payment changes with loan amount
Holding the other inputs at the example above, here is how the result moves as loan amount changes.
| Loan amount | Monthly payment | Loan amount |
|---|---|---|
| $125,000 | $1,549.82 | $125,000 |
| $250,000 | $3,099.64 | $250,000 |
| $375,000 | $4,649.46 | $375,000 |
| $500,000 | $6,199.28 | $500,000 |
The math behind it
The calculator solves the standard amortizing-loan equation. Given a loan amount, an annual rate, and a term in years, it converts the rate to a monthly figure and the term to a number of monthly payments, then computes the fixed payment that pays the loan to zero. From the schedule it totals the interest and the sum of all payments. You can also flip it to solve for the loan amount a given monthly payment supports, and an optional extra monthly payment shortens the payoff.
Assumptions & limits
- The rate is fixed for the life of the loan; many real commercial loans carry variable rates or reset periodically.
- The loan fully amortizes over the term — there is no balloon payment, which is common in real commercial lending.
- The APR you enter is treated as the periodic rate; origination fees, guarantee fees, and closing costs are not built into the payment.
- Any extra monthly payment is applied straight to principal, shortening the term and cutting total interest.
- Property taxes, insurance, and other escrowed items are not included in the payment.
Common questions
How is a commercial loan different from a consumer loan?
Commercial loans fund business purposes — real estate, equipment, or working capital — and are underwritten on the business's cash flow and often a personal guarantee. They frequently carry shorter terms, variable rates, and balloon payments, and lenders scrutinize your debt service coverage ratio. This calculator models the simpler fully amortizing case, so treat balloon or floating-rate offers as needing separate math.
What is a balloon payment and does this calculator include one?
A balloon is a large lump sum due at the end of a loan whose payments were sized as if it ran much longer — common in commercial lending, where a 20-year amortization might balloon at year 7. This calculator assumes full amortization with no balloon, so if your term sheet lists one, the real end payment will differ sharply from what is shown here.
Does the payment shown include taxes, insurance, and fees?
No. It covers principal and interest only. Commercial deals often add origination or packaging fees, an SBA guarantee fee, appraisal and legal costs, and sometimes escrow for property taxes and insurance. Ask the lender for the full APR and closing-cost breakdown to see your true all-in cost.