Commercial Loan Payment & DSCR Calculator
Estimate your monthly payment, debt service coverage ratio, and cash flow for any commercial real estate or business loan.
Loan Parameters
Property Income & Expenses
Payment Summary
DSCR & Cash Flow Analysis
Discuss This Deal With an Advisor
Calculator is for estimate purposes only. Actual terms, rates, fees, and approval are subject to lender underwriting, credit, collateral, cash flow, and market conditions.
How to Use This Calculator
Model any commercial real estate or business loan in seconds. Type exact figures in Quick Entry, or drag the sliders to explore scenarios.
Enter Your Deal
Key in the purchase price and loan amount, or set your loan-to-value, then add your interest rate, amortization, and fixed term.
Add Income & Expenses
Enter the property income and operating costs to instantly see debt service coverage, cash flow, and break-even occupancy.
Review & Refine
See your monthly payment, total interest, balloon balance, and DSCR. Adjust until the deal works, then talk to an advisor.
Make Sense of Your Numbers
Debt Service Coverage Ratio (DSCR)
DSCR compares the property net operating income to its annual loan payments. Most commercial lenders want to see 1.25x or higher, meaning the property earns at least 25% more than the debt costs. A stronger DSCR usually means better terms.
Loan-to-Value (LTV)
LTV is your loan amount divided by the property value. Commercial programs typically finance 65% to 90% depending on the loan type, property, and your profile. SBA 504 and 7(a) allow the highest leverage, often up to 90%.
Amortization vs. Fixed Term
Amortization sets how your payment is calculated, often over 25 years. The fixed term, or balloon period, is how long your rate is locked before the balance is refinanced. Longer amortization lowers the payment; the balloon balance shows what remains at the end of the fixed term.
Cash Flow & Break-Even
Cash flow after debt service is what the property keeps after paying the loan. Break-even occupancy shows how full it must stay to cover the debt. Together they tell you, and your lender, whether the deal carries itself.
SBA 504 vs. SBA 7(a)
Two of the most powerful tools for owner-occupied commercial real estate. The right one depends on your goals.
SBA 504
Best for owner-occupied real estate and heavy equipment. Long-term, fixed-rate financing with as little as 10% down, structured as a bank first mortgage plus a CDC and SBA debenture. Typically fully amortizing with no balloon.
SBA 7(a)
The most flexible SBA program: real estate, business acquisition, working capital, and more, with up to 90% financing. Rates are variable or fixed within SBA limits, and a one-time guaranty fee usually applies based on loan size.
Frequently Asked Questions
Is this calculator exact?
It gives a close estimate using standard amortization math. Your actual rate, terms, fees, and approval depend on lender underwriting, your credit and cash flow, the property, and market conditions. Use it to model deals, then let us confirm real numbers.
What DSCR do I need to qualify?
Most commercial and SBA lenders look for a DSCR around 1.20x to 1.25x or higher, though it varies by program and property type. A stronger ratio typically unlocks better pricing and higher leverage.
Why is there a balloon balance?
Many commercial loans amortize over 20 to 25 years but carry a shorter fixed term, for example 5 or 7 years. At the end of that term the remaining balance, the balloon, is refinanced or paid off. SBA 504 loans are usually fully amortizing with no balloon.
Can you match these numbers with a real lender?
Yes. We work with 250+ banks, credit unions, SBA-preferred lenders, and private capital sources. Share your scenario and we will bring you real, competitive terms for your deal.
Have a Real Deal? Let us Run Your Exact Numbers
Estimates are a great start. Send us your scenario and we will show you the actual programs and terms you qualify for. It is free, with no obligation and no impact to your credit.
