FinToolSuite

Commercial Mortgage Calculator

Updated April 17, 2026 · Mortgage · Educational use only ·

Monthly payment on commercial mortgage.

Calculate monthly payment and total interest on commercial property mortgage. Enter loan amount and interest rate for an instant result.

What this tool does

Enter loan amount, interest rate, and term. The tool shows monthly payment and total interest.


Enter Values

Formula Used
Principal
Monthly rate
Months

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Commercial mortgage typically higher rates than residential (often 1-3% premium). Standard amortisation math applies. 500k at 7% over 15 years: 4,494/month, 308k total interest.

A worked example

Try the defaults: loan amount of 500,000, interest rate of 7%, term of 15. The tool returns 4,494.14. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Loan Amount, Interest Rate, and Term. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

Standard mortgage amortisation formula. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

What the headline rate hides

Lenders quote a rate; what you pay is a blend of that rate, fees, insurance, and any early-repayment penalty built into the product. The figure here isolates the core interest cost so you can compare like-for-like across deals — then add the other costs separately before signing anything.

What this doesn't capture

The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.

What to calculate alongside this

One figure by itself is fragile. The business loan calculator, the refinance calculator, and the mortgage payment calculator cover adjacent ground — the answer to any one of them changes how you read the output from this tool. Worth a few minutes each, honestly.

Example Scenario

Commercial mortgage produces payment based on the inputs provided.

Inputs

Loan Amount:500,000 £
Interest Rate:7
Term:15 years
Expected Result£4,494.14

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Standard mortgage amortisation formula.

Frequently Asked Questions

Why upper rate than residential?
Commercial loans riskier — more variable cashflow, less personal liability, harder to repossess. Premium reflects this.
Typical commercial mortgage term?
10-25 years typical. Shorter than residential due to commercial asset depreciation patterns.
Deposit required?
Typically 25-40% (vs 5-10% residential). Higher LTV available at higher rates.
Tax treatment?
Interest typically tax deductible against business income. Depreciation rules vary by jurisdiction.

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