Reviewed by
Buying, refinancing, or building commercial property starts with one question: how much will you actually pay? Below, I'll show you how to use our commercial real estate loan calculator, what 2026 rates look like by loan type based on my recent experience, and how the numbers play out for office, retail, industrial, and mixed-use deals.
How To Use the Commercial Real Estate Loan Calculator
The commercial real estate loan calculator, which you could also call a commercial mortgage calculator or commercial loan calculator, takes a few inputs and returns your full payment picture. Here's what to enter:
Amount of the loan: Enter the total you're borrowing, which is the property price minus your down payment.
Annual interest rate: Use the annual percentage rate your lender quotes. With Clarify Capital, rates start at 6%.
Amortization period: Set the number of years your payment is calculated over.
Number of regular payments: Enter how many payments you'll make before the balance is due, which sets up any balloon payment.
Start date: Choose when repayment begins.
What Your Results Mean
Once you enter your details, the calculator returns these numbers:
Monthly payment: Your principal and interest each month over the amortization period.
Balloon payment: The remaining balance due at the end of the loan term, which shows up when your number of payments is shorter than the amortization period.
Total payments: Everything you'll pay across the life of the loan, principal plus interest.
Total interest paid: What the financing costs you on top of the loan balance.
Amortization schedule: A month-by-month split of how each payment divides between principal and interest.
Some commercial mortgage loans also offer interest-only payments for an early period, which lowers the monthly cost at first but leaves the full loan balance to pay down later.
Commercial Real Estate Loan Rates in 2026
Commercial mortgage rates move with the broader rate environment. Rates vary by loan type, property, and your financials, but these are the current ranges:
| Loan type | Typical 2026 rate |
|---|---|
| SBA 504 | About 5.6% to 5.9% |
| Conventional / bank | About 6.7% to 8.75% |
| CMBS | About 6.5% to 8% |
| SBA 7(a) | Fixed or variable, capped at 9.75% to 14.75% by loan size |
| Bridge | About 9% to 15% |
| Construction | Prime rate (6.75%) plus 1% to 2% |
The SBA loan rate figures reflect the current rate breakdown. Maximum 7(a) rates range from 9.75% to 14.75%, depending on the loan size and whether the rate is fixed or variable, and 504 rates track recent debenture pricing. Conventional, CMBS, and bridge ranges reflect a July 2026 rate snapshot. Your annual interest rate ultimately depends on underwriting, so treat these as a starting point and confirm live commercial mortgage rates with your lender.
Loan Types and Which Fits Your Property
The right loan depends on the property, your timeline, and how you plan to hold it. These are the main options for commercial real estate financing:
Conventional bank
Financing directly from a bank, usually with the strongest rates for well-qualified borrowers
CMBS
Pooled loans sold to investors, often with competitive fixed rates on larger investment properties
Bridge loans
Short-term financing until you refinance or sell, useful for repositioning but priced higher
Construction loans
A construction loan funds ground-up development, then converts to permanent financing
USDA and land
USDA financing backs rural commercial property, and raw land calls for a dedicated land loan
If you need flexibility rather than a single lump sum, a business line of credit can cover renovations, carrying costs, or the gap between closing and rent.
Payment Scenarios by Property Type
To make the numbers concrete, here's how a 25-year amortization plays out across four property types I've seen recently at 2026 rates. Each assumes principal and interest only:
| Property type | Purchase price | Down payment | Loan amount | Rate | Monthly payment |
|---|---|---|---|---|---|
| Office | $2,000,000 | 25% ($500,000) | $1,500,000 | 6.65% | $10,269 |
| Retail | $1,200,000 | 25% ($300,000) | $900,000 | 6.65% | $6,161 |
| Industrial | $3,000,000 | 30% ($900,000) | $2,100,000 | 6.65% | $14,377 |
| Mixed-use | $1,500,000 | 25% ($375,000) | $1,125,000 | 6.75% | $7,773 |
Payments are calculated on a 25-year amortization at the starting rates lenders quote by property type. Higher-risk property types and shorter terms push the payment up, which is why running your own numbers before you make an offer pays off.
What Lenders Look For
Two ratios decide most commercial real estate loans:
Debt service coverage ratio: Lenders typically want a DSCR of at least 1.25, meaning the property's net operating income covers its annual debt payments with room to spare.
Loan-to-value ratio: Most lenders prefer an LTV under 80%, which is why a 20% to 30% down payment is standard.
Beyond the ratios, expect an appraisal and closing costs (appraisal fees, title, and origination fees can run a few percent of the loan), and plan for the property itself to serve as collateral. A strong credit score and steady cash flow round out the picture. At Clarify Capital, APRs start at 6%, and you work with a U.S.-based lending advisor rather than a call center.
Minimum Qualifications
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
Finance Your Commercial Property With Clarify Capital
A commercial real estate loan calculator spits out a confident number, and the right financing gets you to closing. Whether you need to make a first purchase or get a cash-out refinance, Clarify Capital matches you with the loan type and lender that fits your property. Apply today to see your options without a ding to your credit.
Commercial Real Estate Loan Calculator FAQ
These are answers to a few questions business owners ask me all the time when they need to fund commercial property.
How Do You Calculate a Commercial Real Estate Loan Payment?
Your monthly payment comes from three things: the loan amount, the annual interest rate, and the amortization period. The calculator applies the standard amortization formula to those inputs, then shows your monthly principal and interest, total interest paid, and any balloon balance due at the end of the term.
What Are Current Commercial Real Estate Loan Interest Rates?
In 2026, commercial mortgage rates run from about 5.6% for SBA 504 loans to 15% for bridge financing, with conventional and CMBS loans landing in the 6.5% to 8.75% range. Your rate depends on the loan type, property, term, and your financials.
How Much Down Payment Do You Need for Commercial Property?
Most commercial real estate loans require 20% to 30% down, which keeps the loan-to-value ratio under the 80% most lenders prefer. SBA loans can allow less down for owner-occupied property, which is one reason they're popular with small and midsize business owners.
What Is a Good DSCR for a Commercial Loan?
Lenders generally look for a debt service coverage ratio of at least 1.25, meaning the property earns 25% more than it needs to cover its annual loan payments. A higher DSCR strengthens your application and can help you land a better rate.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
Related Posts
