Commercial Loan Calculator
A commercial loan calculator helps business owners and investors determine the costs and payment schedules for commercial financing. Calculate monthly payments, interest costs, and total financing expenses for commercial real estate, business properties, and commercial investment financing.
Commercial Loan Calculator
Use this calculator for commercial real estate financing, commercial property loans, and business property loan calculations.
Results:
| Monthly Payment | $7,325.00 |
| Total Interest | $821,000.00 |
| Total Loan Cost | $1,758,000.00 |
| Loan Amount | $937,500.00 |
| Loan-to-Value Ratio | 75.0% |
| Debt Service Coverage | 1.03 |
| Cap Rate | 7.2% |
| Cash-on-Cash Return | 28.8% |
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| View Payment Schedule | |
Commercial Loan Affordability Calculator
Calculate how much commercial property you can afford based on your business income, cash flow, and investment criteria.
Results:
| Max Property Value | $2,185,000.00 |
| Max Loan Amount | $1,785,000.00 |
| Monthly Payment Budget | $12,500.00 |
| Affordability Rating | Good |
| Recommended Property Type | Office Building |
| Required Net Operating Income | $175,000.00 |
| Debt Service Coverage Ratio | 1.17 |
| Total Annual Investment Cost | $150,000.00 |
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| View Affordability Analysis | |
Commercial Property Investment Calculator
Calculate the total return on investment for commercial property including rental income, appreciation, and tax benefits.
Results:
| Total ROI | 225.8% |
| Total Net Income | $810,000.00 |
| Total Appreciation | $516,250.00 |
| Annual Net Operating Income | $81,000.00 |
| Cap Rate | 6.5% |
| Cash Flow (Annual) | $81,000.00 |
| Property Value (10 years) | $1,766,250.00 |
| Total Return on Investment | $1,326,250.00 |
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| View Investment Analysis | |
Understanding Commercial Loan Financing
Commercial loan financing provides specialized funding for business properties and commercial real estate with unique terms for investment properties. Understanding financing options, property types, and investment returns helps make informed decisions about commercial real estate investments.
| Property Type | Typical LTV | Interest Rate Range | Cap Rate Range | Investment Risk |
|---|---|---|---|---|
| Office Building | 70-80% | 6.5-8.5% | 5-8% | Medium |
| Retail Space | 70-75% | 7.0-9.0% | 6-9% | Medium-High |
| Warehouse | 75-80% | 6.0-8.0% | 6-8% | Low-Medium |
| Multifamily | 75-85% | 5.5-7.5% | 4-7% | Low |
Commercial Loan Financing Options
Different financing sources offer various advantages and terms for commercial real estate purchases.
Commercial Financing Sources
| Financing Source | Interest Rate | Term Length | Advantages | Requirements |
|---|---|---|---|---|
| Traditional Banks | 6-9% | 10-25 years | Competitive rates, relationship | Strong credit, experience |
| SBA 504 Loans | 5-8% | 10-20 years | Low down payment, fixed rates | Owner-occupied, job creation |
| CMBS Loans | 6-8% | 5-10 years | Non-recourse, large amounts | Stabilized properties |
| Hard Money Lenders | 10-15% | 6 months-3 years | Fast closing, asset-based | Property value, exit strategy |
Commercial Property Investment Metrics
Understanding key investment metrics helps evaluate commercial property investment opportunities.
Key Investment Metrics
| Metric | Formula | Good Range | Purpose |
|---|---|---|---|
| Cap Rate | NOI ÷ Property Value | 5-10% | Property yield comparison |
| Cash-on-Cash Return | Cash Flow ÷ Cash Invested | 8-15% | Return on cash invested |
| Debt Service Coverage | NOI ÷ Debt Service | 1.2-1.5+ | Loan qualification |
| Loan-to-Value | Loan Amount ÷ Property Value | 70-80% | Financing leverage |
Commercial Real Estate Investment Benefits
Commercial real estate ownership provides significant investment and financial advantages for investors.
Benefits of Commercial Real Estate Investment
- Steady Income: Predictable rental income from commercial tenants
- Tax Benefits: Depreciation, interest deductions, operating expense deductions
- Appreciation: Long-term property value appreciation
- Inflation Hedge: Rental income typically increases with inflation
- Portfolio Diversification: Alternative investment to stocks and bonds
- Leverage Benefits: Use of financing to amplify returns