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Calculate monthly loan payments, total interest, and amortization details for commercial real estate loans.
M = P[r(1+r)^n]/[(1+r)^n-1]
Commercial real estate loans differ from residential mortgages in several important ways. Terms are shorter (typically 5-10 years versus 30), interest rates are higher, and most commercial loans use a balloon structure where the remaining balance comes due at maturity even though payments are amortized over 20-30 years.
For NNN property acquisitions, understanding the loan payment structure is essential for cash flow planning. Your monthly payment determines whether the property cash-flows positively after debt service. Use the DSCR calculator alongside this tool to verify your property meets lender coverage requirements.
| Loan Type | Typical LTV | Term | Best For |
|---|---|---|---|
| Bank / Portfolio | 65-75% | 5-10 yr | Relationship borrowers, local banks |
| CMBS (Conduit) | 65-75% | 5-10 yr | Larger deals, non-recourse desired |
| SBA 504 | Up to 90% | 10-25 yr | Owner-occupied, smaller deals |
| Life Company | 55-65% | 7-15 yr | Best rates, credit tenants |
| Bridge / Hard Money | 60-75% | 1-3 yr | Quick close, value-add, repositioning |
Explore current rate benchmarks and lending conditions on the financing page.
Commercial loan rates for NNN properties in 2026 range from 5.5% to 8.0% depending on loan type, LTV, and tenant credit. Investment-grade tenants with long lease terms typically qualify for the lowest rates, often through life company or CMBS lending.
Most commercial lenders require 25-35% down (65-75% LTV). SBA 504 loans allow as little as 10% down for owner-occupied properties. The exact requirement depends on property type, tenant quality, and the borrower's financial strength.
Most commercial loans have a shorter term (5-10 years) than the amortization period (20-30 years). At maturity, the remaining principal balance is due as a lump sum called a balloon payment. Borrowers typically refinance before the balloon comes due.