Commercial Loan Calculator

CFOs and business owners rely on this calculator to model complex debt structures that standard mortgage tools cannot handle. Commercial lending often involves non-standard terms such as "Interest-Only" periods where principal repayment is deferred, or "Balloon Payments" where a large lump sum is due at maturity. This tool allows you to simulate these scenarios to understand the true cash flow impact of a proposed financing offer.

Accuracy in commercial finance requires attention to the "Day Count Convention". While consumer loans typically use a 30/360 basis, commercial loans often use Actual/360 or Actual/365, which can slightly increase the effective interest paid. This calculator provides the flexibility to switch between these accrual methods, ensuring the generated schedule matches the bank's term sheet exactly.

The monthly payment PMT for a fully amortizing loan is derived from the Principal P, monthly rate r, and total periods n.

If a Balloon Payment B is required at the end of term n, the calculation uses the "Amortization Term" n_amort for payment sizing, but the loan balance at period n_term becomes the balloon.