Knowing your monthly commercial mortgage payment is the first step in any refinance decision. The payment amount directly affects your DSCR, cash flow, and borrowing capacity. Use the free calculator below to estimate your payment under different loan scenarios.
Commercial Mortgage Payment Calculator
How Commercial Mortgage Payments Work
Unlike residential mortgages, most commercial loans don’t fully amortize over the loan term. Instead, they feature:
- Amortization period: The schedule over which payments are calculated (typically 20, 25, or 30 years)
- Loan term / balloon: When the loan matures and the remaining balance is due (typically 5, 7, or 10 years)
For example, a “7-year term on 25-year amortization” means you make payments as if the loan were 25 years, but after 7 years the remaining balance (balloon) is due. This is why balloon refinancing is such a common need.
How Your Payment Affects DSCR
Your monthly payment directly determines your DSCR. Lower payments mean better DSCR and more borrowing capacity. You can lower your payment by:
- Extending amortization — Going from 20 to 30 years significantly reduces monthly payments
- Securing a lower rate — Even 0.5% lower can save hundreds per month
- Interest-only periods — Some bridge loans offer 1-2 years of interest-only payments
- Reducing the loan amount — Less debt means lower payments
Use our DSCR Calculator alongside this tool to check whether your payment qualifies.
Typical Commercial Mortgage Rates by Program (2026)
- Conventional bank: Prime + 0.5-2.0% (variable) or 5.5-7.5% (fixed)
- CMBS: Fixed from 5.25-6.75% (spread over Treasury)
- SBA 504: Below-market fixed (split into two notes)
- Bridge loans: SOFR + 300-500bps (typically 7.5-9.5% all-in)
- Life company: 5.0-6.5% fixed (best rates, strictest qualifying)
- Debt funds: 8.0-11.0% (higher risk, faster closing)
How RefiLoop Helps
RefiLoop shops your loan across 7,000+ lenders simultaneously. Instead of guessing what your payment might be, you get 3-5 real offers with actual rates and terms from competing lenders. Lower rate = lower payment = better DSCR = easier approval.
Schedule a free 15-minute review and we’ll show you what today’s market offers for your deal.
Frequently Asked Questions
What is a typical amortization period for commercial loans?
Most commercial loans use 20-30 year amortization with a 5-10 year balloon term. Multifamily agency loans (Fannie Mae, Freddie Mac) may fully amortize over 30 years.
Are commercial mortgage payments tax-deductible?
Interest is generally deductible as a business expense. Principal payments are not. Consult your CPA for specifics.
What happens when the balloon comes due?
The remaining balance must be paid off, typically through refinancing. This is where many borrowers get stuck if rates have risen or property values have declined. Plan your refinance 6-12 months before the balloon date.
About David Greenbaum
David Greenbaum is a commercial mortgage broker and co-founder of RefiLoop. He specializes in helping commercial property owners refinance maturing loans between $200K and $15M across Texas, Florida, Georgia, North Carolina, Ohio, and other priority markets. With hands-on experience in commercial bridge loans, debt fund financing, and conventional CRE refinancing, David helps borrowers find the right capital source for their situation — not just the easiest one.