How does maturity differ from amortization?
Amortization sets the payment horizon; maturity is when the remaining principal becomes due. This calculator accepts months and shows year equivalents, with maturity no later than the amortization horizon.
US · USDTransparent educational estimate
Commercial Real-Estate Loan Calculator
Calculate commercial real-estate loan payments, interest-only phases, balloon cash at maturity, upfront fees, mortgage constants and optional NOI-based DSCR.
What this baseline models
- One fully advanced fixed-rate US/USD loan
- Month-end payments and separate maturity
- Optional initial interest-only months
- Upfront fees and educational coverage
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Model payments and maturity cash
Inputs and assumptions
The amortization horizon includes the initial interest-only months. After I months, principal amortizes over A − I months. This matches the Mortgage calculator’s timing convention; it is an explicit model assumption, not a universal commercial-loan convention.
Initial monthly payment
$6,443.01
Regular loan payment only
Balloon at maturity
$899,320.87
Principal after the final regular payment
Final maturity cash requirement
$905,763.88
Final regular payment plus balloon
First-year scheduled debt service
$77,316.17
Actual regular payments through min(12, term)
Payment phases and financing cost
Phase annualization is monthly payment × 12, not actual first-year debt service when phases change or maturity is early. DSCR excludes balloon and upfront fees and is not a lender covenant test.
- Amortizing phase (months 1–60) annualized debt service
- $77,316.17
- Amortizing mortgage constant
- 7.73%
- Amortizing DSCR
- Not available
- Interest through maturity
- $285,901.71
- Points cost
- $0.00
- Total upfront fees
- $0.00
- Total financing cost
- $285,901.71
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Intermediate calculations remain unrounded. Money rounds half-up to cents; ratios use six decimal places internally and display to two. Multiplying rounded displayed payments can differ slightly from unrounded totals.
Balance through maturity
Balances follow regular month-end payments. The final drop to $0 is the separate maturity principal repayment, not a regular payment. When maturity ends the IO phase, its regular payment is still interest-only.
Chart scale: percentage of original principal. Solid line: balance after regular payments. Dashed line: balloon repayment.
| Month / years | Event | Regular payment | Balance | Interest to date |
|---|---|---|---|---|
| 0 / 0 | Origination | $0.00 | $1,000,000.00 | $0.00 |
| 12 / 1 | Annual point | $6,443.01 | $982,199.61 | $59,515.78 |
| 24 / 2 | Annual point | $6,443.01 | $963,301.33 | $117,933.67 |
| 36 / 3 | Annual point | $6,443.01 | $943,237.45 | $175,185.95 |
| 48 / 4 | Annual point | $6,443.01 | $921,936.07 | $231,200.74 |
| 60 / 5 | Maturity · before balloon | $6,443.01 | $899,320.87 | $285,901.71 |
| 60 / 5 | After maturity principal repayment | — | $0.00 | $285,901.71 |
Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Principal remains due at maturity
The balloon requires cash at maturity. Refinancing or a sale may be unavailable or insufficient; neither is guaranteed.
Some coverage measures are unavailable
DSCR requires NOI and a positive regular debt-service denominator. Missing NOI is not zero NOI.
Model scope and excluded costs
One fully advanced fixed-rate US/USD loan with month-end payments; no daily-interest conventions, variable rates, draws, financed fees, prepayments, penalties, APR or refinance forecasts. Property costs are outside loan payments. Phase annualization is monthly payment × 12, not actual first-year debt service when phases change or maturity is early. DSCR excludes balloon and upfront fees and is not a lender covenant test.
Interest-rate sensitivity
Rates change by −1, −0.5, 0, +0.5 and +1 percentage points. All other inputs stay fixed and each row reruns the engine. Unsupported boundary rows are omitted, not clamped. This is not a refinance forecast.
Interest-rate sensitivity details
| Rate change | Annual rate | Initial payment | Post-IO payment | Balloon | Financing cost |
|---|---|---|---|---|---|
| -1.00% | 5.00% | $5,845.90 | Not applicable | $885,801.89 | $236,555.92 |
| -0.50% | 5.50% | $6,140.87 | Not applicable | $892,715.25 | $261,167.75 |
| Base | 6.00% | $6,443.01 | Not applicable | $899,320.87 | $285,901.71 |
| +0.50% | 6.50% | $6,752.07 | Not applicable | $905,621.63 | $310,745.93 |
| +1.00% | 7.00% | $7,067.79 | Not applicable | $911,621.52 | $335,689.04 |
Formula reference
Every output is explainable
Money is displayed in USD and rates are entered as percentages where applicable. Formula version commercial-loan@1.0.0 stays attached to the result.
Regular payments
IO = P × r; amortizing = P × r × (1 + r)^(A − I) ÷ ((1 + r)^(A − I) − 1)
P is original principal and r is nominal annual rate ÷ 12. At zero interest, amortizing payment is P ÷ (A − I). If I = T, only IO payments occur and no amortizing denominator is evaluated.
Maturity cash
Final regular payment + principal remaining after payment T
Regular payments occur at month-end. The balloon is paid separately at maturity, not included in regular debt service.
Phase constant and coverage
Constant = monthly payment × 12 ÷ P; DSCR = annual NOI ÷ (monthly payment × 12)
Phase annualization is monthly payment × 12, not actual first-year debt service when phases change or maturity is early. DSCR excludes balloon and upfront fees and is not a lender covenant test. Missing NOI or zero regular debt service gives unavailable DSCR; zero and negative NOI remain meaningful arithmetic inputs.
Financing cost
Interest through maturity + P × points rate + fixed upfront fees
Points and fixed fees are paid upfront, not financed. Principal repayment is not financing cost.
Example scenario
A five-year term with a 25-year amortization horizon
A $1,000,000 loan at 6% with A = 300 months, T = 60 months, no IO, 1% points, $5,000 fixed fees and $100,000 annual NOI. Select Use example to load all assumptions.
Open the example in the calculatorMonthly payment
$6,443.01
Annual regular debt service
$77,316.17
Balloon after payment 60
$899,320.87
Final maturity cash
$905,763.88
Financing cost
$300,901.71
Mortgage constant / DSCR
7.73% / 1.29×
FAQ
Common questions
Does the amortization clock include interest-only months?
Yes. After I initial interest-only months, principal amortizes over A − I months. This matches our Mortgage calculator and is an explicit assumption, not a universal loan convention. If I equals maturity, there is no post-IO payment within term and all original principal is due at maturity.
Does the DSCR include the balloon?
No. Each phase uses annual NOI divided by 12 times that phase’s regular monthly payment. Balloon and upfront fees are excluded. These educational measures are not lender covenant tests, and missing NOI or zero regular debt service makes DSCR unavailable.
Will another calculator reuse every commercial term?
Only compatible inputs are reused. Mortgage and Rental ROI do not model separate balloon maturity; Maximum Loan requires whole-year durations and excludes IO; automatic DSCR reuse cannot choose an IO payment phase. Opening those tools does not change stored terms. Payments and balloons are not auto-saved into other calculators.
Guide, methodology, and related calculators
Read the supporting methodology, then compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.