Calculate principal and interest payments for commercial mortgages. Includes origination fees and closing cost analysis.
M = P[r(1+r)^n]/[(1+r)^n-1]
A commercial mortgage finances the purchase of income-producing real estate. Unlike residential mortgages, commercial loans are underwritten based on the property's income rather than the borrower's personal income. The lender evaluates the net operating income, DSCR, and loan-to-value ratio to determine the maximum loan amount and rate.
For triple net properties, the mortgage payment is the primary expense the investor bears after collecting rent. Since the tenant covers taxes, insurance, and maintenance, the monthly cash flow is effectively the NNN rent minus the mortgage payment minus any asset management costs.
Budget 2-5% of the loan amount for closing costs. Typical fees include origination (0.5-1.5%), appraisal ($3,000-$8,000), environmental report ($2,000-$5,000), legal ($3,000-$10,000), title insurance, and survey costs. These are upfront costs that affect your total cash investment and initial cash-on-cash return.
Compare against the loan payment calculator for a simpler payment-only calculation, or use the refinance analysis tool to model a refi scenario.
This page does not store a credit-score minimum. The payment it calculates uses the rate, amount, and term you enter.
Enter the amortization and term from the quote you have. If the term is shorter than the amortization, the unpaid balance is still owed at the end.
This page does not publish a rate range. The 30-year mortgage series on the homepage is the FRED MORTGAGE30US print, which is a residential survey, not a commercial quote.