Commercial Mortgage Payment Calculator 2026

If this monthly payment aligns with your current cash flow projections, the next step is to verify the rate with a soft-pull check to confirm where you sit relative to current market benchmarks. Keep in mind this is a raw estimate; your actual interest rate depends heavily on your credit profile, property type, LTV, and the lender's risk appetite.

What changes your rate / answer

Commercial real estate financing isn't one-size-fits-all. When you adjust the variables above, remember that these factors move your real-world borrowing cost:

• Credit Score: A score of 680+ typically unlocks better rates. Scores between 620–680 may face a 0.5–1.5% rate premium. Below 620, many banks decline or demand higher equity.
• Property Type & Collateral: Multifamily property financing usually secures the lowest rates. Office, retail, and industrial assets carry slightly higher rates due to higher vacancy and economic sensitivity. Non-recourse commercial loans trade convenience for cost—expect a 0.5–1% premium.
• Loan-to-Value (LTV): A 65% LTV (35% down) typically beats a 75% LTV. Higher LTV loans increase lender risk and push rates up by 0.25–0.75%.
• Debt Service Coverage Ratio (DSCR): Lenders stress-test your property's NOI against debt service. If your DSCR falls below 1.25, you face either a rate bump, shorter term, or recourse language. Tight cash-flow deals don't pass underwriting.
• Amortization Term: A 20-year amortization costs more per month than a 30-year, but you build equity faster and reduce interest paid over the life of the loan. Verify your loan product's maximum term—agency multifamily financing often tops out at 30 years, while bridge loans run 1–3 years.

How to use this

This tool is designed to give you a quick, realistic baseline on debt service before you contact lenders or start your formal loan application. Model multiple scenarios to find your deal's true cost.

• Loan Amount: Enter the total loan principal. If you're wrapping renovation costs into permanent financing, include the full amount here.
• Interest Rate: Input the rate you're seeing for your specific asset class in 2026. For conservative planning, run a second scenario 0.5–1% higher than your expected rate.
• Amortization Period: Verify the max term your loan product allows. Agency loans may offer 25–30 years; hard money and bridge loans run much shorter. A shorter amortization increases your monthly payment but accelerates payoff.
• Output: Use the monthly payment as your fixed-cost baseline. Divide it by 12 and divide your projected annual NOI by that figure to calculate your DSCR. If the result falls below 1.25, the deal needs stronger cash flow or lower debt to pass underwriting.
• Comparison: Run scenarios at different rates and terms to understand your breakeven—the point at which the deal no longer pencils. That's your risk floor.

What lenders actually look at

Your payment estimate is only one side of the underwriting equation. Lenders also pull your credit, verify your time in business (typically 24+ months for conventional loans), and stress-test your property's rent roll, expense history, and market position. A lower payment doesn't guarantee approval if your DSCR is weak or your property shows operational risk.

If you're comparing agency vs. bridge financing, remember that agency lenders focus on long-term cash flow and DSCR, while bridge lenders prioritize the exit (sale or refinance) and care less about current income. That difference shows up in rate, term, and documentation.

Bottom line

Use this tool to filter out deals that cannot support their own debt service. If the payment doesn't make sense on paper today at a realistic rate, it won't make sense after closing—and it won't get past a lender's desk.