Commercial Loan Calculator
Use this calculator to estimate your debt service coverage with a new loan. If your debt service coverage is high enough, including your new loan payment, you have a good chance of being approved.
How the commercial loan calculator works
It amortizes a business or commercial loan into level monthly payments and generates the full schedule, so you can see the interest cost and principal pay-down for budgeting and financing decisions.
Worked example: with loan amount of $250,000, monthly payment of $5,000 and interest rate (apr) of 8.50%, the commercial loan calculator shows monthly payment of $3,099.64.
- Loan amount
- $250,000
- Monthly payment
- $3,099.64
- Total interest
- $121,957
- Total of payments
- $371,957
The formula
Payment = P × r ÷ (1 − (1 + r)⁻ⁿ). Total interest = payment × n − principal.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the commercial loan calculator
How do commercial loan payments differ from a mortgage?
The math is the same amortization, but commercial loans often carry higher rates, shorter terms, and sometimes a balloon. Use this for level fully-amortizing loans.
Can I use this for an SBA or equipment loan?
Yes, for any fixed-rate, fully-amortizing business loan. Enter the amount, rate and term to see the payment and total interest.
How can I lower the total interest?
A shorter term, a lower rate, or extra principal payments all reduce total interest. The extra-payment field shows the effect directly.
Is the Commercial Loan Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.