Commercial Loan Calculator
Free commercial loan calculator: enter the loan amount, annual interest rate, and term to get the monthly payment, total interest, and total repayment on a fully amortizing fixed-rate loan. Built for lenders and borrowers across equipment finance, commercial real estate, SBA, and working capital lending.
How a commercial loan payment works
A fixed-rate commercial loan is repaid through amortization: a level monthly payment that retires the balance over the term. Early payments are mostly interest and later payments mostly principal, and a longer term lowers the monthly payment but raises the total interest. The same amortizing structure underlies most equipment financing, commercial real estate, and SBA loans. To test whether a borrower’s income supports the payment, use the DSCR calculator, and for the full menu of options see the types of commercial financing.
Frequently asked questions
How is a commercial loan payment calculated?
A fixed-rate commercial loan is repaid with a level monthly payment covering interest and principal over the term. The payment equals the loan amount times the monthly interest rate, divided by one minus one plus the monthly rate raised to the negative number of payments.
Why does a longer term cost more in total interest?
A longer term lowers the monthly payment but keeps the balance outstanding longer, so more interest accrues over the life of the loan. A shorter term raises the monthly payment but reduces total interest.
Does this handle interest-only or balloon loans?
No. This calculator models a fully amortizing loan that reaches a zero balance at maturity. Interest-only and balloon structures, common in bridge and construction lending, leave a principal balance due at the end.
How do lenders use the monthly payment?
The monthly payment is the debt service a lender underwrites against, testing it with a debt service coverage ratio to size how much loan the borrower’s income can support.
Estimate only, not a quote. Behind every funded loan is the servicing work of applying payments, reconciling cash, and monitoring the portfolio, which Zolvo automates on top of the systems lenders already run.