Commercial Property Loan Calculator
This commercial loan calculator models payment, debt-service coverage and the balloon balance Florida commercial mortgages usually carry.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Commercial loans usually amortize over 20-25 years but balloon in 5-10, so the balance shown must be refinanced or repaid then. Most lenders want DSCR of 1.25 or better. Estimate only.
Commercial mortgages separate amortization from term. The payment is calculated over twenty or twenty-five years, but the loan comes due in five to ten, leaving a balloon balance to refinance.
Debt-service coverage is the governing ratio. Lenders size the loan so that net operating income exceeds annual debt service by a comfortable margin, commonly 1.25 times.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
How to Use This Calculator
- 1
Enter the purchase price and down payment — commercial typically requires 25% to 35%.
- 2
Enter the rate, the amortization schedule and the balloon term separately, because they differ.
- 3
Enter annual net operating income, meaning income after operating expenses but before debt service.
- 4
Read DSCR against the lender threshold and note the balloon balance you will need to refinance.
The Formula & Assumptions
Loan = price ×
(1 − down%)
Annual debt service =
monthly payment × 12
DSCR = NOI ÷ annual
debt service
Balloon = remaining
principal at term
DSCR below the lender threshold is usually solved by reducing the loan amount rather than by argument. Knowing your ratio before applying tells you what size loan the property will actually support.
The balloon is the structural risk. If values or rates have moved against you at maturity, refinancing can require fresh equity, so most owners plan the exit well before the date arrives.
Net operating income excludes debt service, depreciation and capital expenditure. Lenders will re-underwrite your NOI from actual operating statements, and their number is frequently lower than the seller\u2019s pro forma.
Frequently Asked Questions
How much down payment does a commercial loan require?
Commonly 25% to 35%, higher for special-purpose properties or weaker markets. The precise figure is usually driven by what down payment makes the debt-service coverage ratio work.
What DSCR do commercial lenders want?
1.25 is the common threshold, with stronger properties and experienced sponsors sometimes clearing at 1.20. Below that, lenders typically reduce the loan rather than raise the rate.
Why does the loan balloon?
Commercial lenders limit their interest-rate exposure by committing for five to ten years while amortizing over a longer schedule. That keeps the payment manageable but leaves a balance due at maturity.
Is a residential DSCR loan an alternative?
For one-to-four-unit residential rentals, often yes, and terms are usually better with no balloon. Once a property is five units or more, or is genuinely commercial in use, it moves to commercial underwriting.
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Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.
It estimates a commercial mortgage. Lenders size these on the income the property earns, not on yours.
Commercial Property Loan Calculator in Florida
Florida commercial lending is active across retail, light industrial, and mixed-use in the growth corridors around Tampa, Orlando, and Jacksonville. Insurance and roof condition weigh heavily on underwriting here, and a building with an ageing roof can struggle to place coverage at a price the income supports.
How the Commercial Property Loan Calculator Works
The calculator builds the payment from the schedule. It then sets the property income against that payment, which gives the coverage ratio lenders underwrite to.
The Commercial Property Loan Formula, Explained
DSCR = net operating income / annual debt service
Commercial loans commonly amortize over 20 to 25 years but mature in 5 to 10, leaving a balloon. You refinance or sell at maturity rather than paying the loan off.
Lenders usually want a debt-service coverage ratio of about 1.25, meaning income exceeds the payment by a quarter. That cushion, rather than your personal income, sizes the loan.
The Complete Commercial Property Loan Calculator Guide
Commercial underwriting starts with the property, not the borrower. The question is whether the income covers the debt with room to spare. The answer sizes the loan.
The balloon is the structural difference from a home loan. A 25-year amortization with a 7-year term means you will be refinancing in year seven, whatever rates look like then.
Model the refinance now. If the deal only works assuming lower rates at maturity, it is a bet on the market rather than on the building.
Commercial Property Loan Calculator FAQ
What DSCR do commercial lenders want?
Around 1.25 is a common minimum, meaning net operating income is 25% above the payment. Stronger ratios improve both pricing and the amount available.
Why does the term differ from the amortization?
Commercial loans amortize slowly to keep payments manageable but mature early to limit the lender's exposure. You refinance the balance left at maturity or repay it from a sale.