Commercial Mortgage Calculator
Free commercial mortgage calculator for Chicagoland buyers, investors, and owner-occupants. Calculate monthly payment, balloon, DSCR, cap rate, cash-on-cash return, and annual cash flow. Switch to Full Underwriting Mode for line-item P&L analysis, automatic lender adjustments, DSCR sensitivity stress testing, lender match across SBA / CMBS / bank portfolio / life co / bridge, and a printable deal summary.
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Enter your loan terms
Commercial loans amortize over 20–30 years but are due in 5–10 years. The unpaid balance at term end is the balloon payment.
How Much Can I Borrow?
Lenders size commercial loans on debt coverage. Enter the property’s NOI and your lender’s DSCR floor to see the largest loan the income supports.
SBA 504 Structure
Typical 504 deals pair a bank first mortgage with a fixed-rate CDC debenture. Illustrative — SBA terms vary; enter current quotes from your lender and CDC.
Commercial vs. Residential Mortgages
Balloon Terms
Commercial loans almost never run their full amortization. A 25-year amortization with a 5-year balloon means you owe the remaining ~85% of the loan in one lump sum after 5 years.
Higher Down Payments
Commercial lenders typically require 20–35% down. SBA 504 owner-occupant loans can go as low as 10%. Investment property loans usually require 25–30%.
DSCR Requirements
Most lenders require a DSCR of 1.20–1.30x minimum — meaning property NOI must be at least 1.20–1.30 times annual debt payment.
Underwritten NOI
Lenders don't accept seller's NOI at face value. They apply vacancy floors, management fees, and replacement reserves — typically reducing NOI by 5–15%.
Borrower Strength
Lenders also check the borrower: net worth equal to loan amount, 9–12 months of debt service in liquidity, real estate experience, credit score 680+.
Personal Recourse
Many commercial loans require a personal guarantee. Non-recourse loans typically need larger deals, stronger sponsors, and lower leverage.
Need Help With Your Acquisition?
A calculator gives you the math. A broker gives you the deal. Whether you're shopping for property, evaluating a deal, or refinancing, Jason can connect you with the right lenders and identify properties that meet your numbers.
Find Your Next Property
Submit acquisition criteria and get matched with on-market and off-market opportunities in Chicagoland.
Submit Criteria →Get a Property Valuation
Whether your balloon is coming due or you're considering a sale, get a free Broker Opinion of Value with comps and pricing strategy.
Request BOV →Underwriting & Mortgage Questions
Why is the lender's NOI lower than the seller's?
Lenders apply standard adjustments: a vacancy floor (5% minimum even if 100% leased, 10% for office), a management fee (3–5% even if you self-manage), and replacement reserves ($0.20–$0.30/SF annually). The result: lender NOI is usually 5–15% lower than seller NOI — and that's what your loan gets sized against.
Does every lender use the same DSCR threshold?
No — DSCR thresholds vary dramatically. Life insurance companies want 1.30–1.45x. Bank portfolio loans typically require 1.20–1.30x. CMBS runs 1.20–1.25x. SBA 504 and 7(a) can go as low as 1.15x for owner-occupants. Bridge lenders may not require a DSCR at all. This calculator's lender match feature shows which loan types your specific deal qualifies for.
What's a balloon payment?
A balloon is the lump sum owed at the end of a commercial loan term. Lenders amortize over 25 years (manageable monthly payment) but only commit to the rate for 5–10 years. At term end, you must refinance, sell, or pay cash.
What's stress-tested DSCR?
Standard DSCR uses today's NOI and today's debt payment. Stress-tested DSCR shows what happens if conditions get worse: rates +1%, vacancy +5%, or rents −5%. If your stress-tested DSCR falls below 1.0x in any scenario, the deal has real risk — even if today's number looks fine.
Can I use the printable summary for real deals?
Yes — Full Underwriting Mode is built for that. Use it for properties you're considering, properties on the open market, or properties you're listing. The printable summary includes all inputs, the underwriting analysis, lender match, and contact info. Just remember it's still an underwriting tool — actual loan terms require real quotes from real lenders.
A complete commercial underwriting tool — free, no signup
This is not a residential mortgage calculator. It is a working commercial real estate underwriting tool built for buyers, investors, owner-occupants, and brokers. Two modes — pick the one that fits your stage of due diligence.
Quick Calculator Mode
For evaluating a deal in 30 seconds. Enter purchase price, down payment, interest rate, amortization period, and loan term.
- Monthly principal & interest payment
- Loan amount and loan-to-value (LTV) ratio
- Annual debt service
- Balloon payment due at term end with % of original loan still owed
- Quick DSCR check using your net operating income
Full Underwriting Mode
For underwriting a real deal the way a lender would. Line-item income and expenses with automatic lender adjustments and stress testing.
- Lender-underwritten NOI vs seller-reported NOI with itemized adjustments
- Vacancy floor by property type (5% retail/industrial, 10% office, 7% medical/mixed)
- Management fee floor (4% of effective gross income)
- Replacement reserves by property type ($0.15–$0.30 per square foot)
- Lender DSCR with three stress test scenarios: rates +1%, vacancy +5%, rents −5%
- Cap rate, annual cash flow, and cash-on-cash return
- Lender match across SBA 504, SBA 7(a), CMBS, bank portfolio, life insurance, and bridge lenders
- Printable underwriting summary (PDF-ready) for offers and broker books
No email required. No signup. No data collection. All calculations happen in your browser — your numbers never leave your device. Built by Jason Bitton, a top commercial real estate broker at RE/MAX Commercial in Libertyville, Illinois, for fellow brokers, buyers, and investors evaluating Chicagoland deals.