About the Commercial Loan Repayment Calculator
This works out the repayment for a commercial loan — for business premises, investment property held in a company or trust, or business equipment — including the option to structure the loan with a balloon (residual) payment due at the end of the term. Commercial loans typically run over shorter terms than home loans, often 10 to 20 years.
How it works
With no balloon, it uses the standard amortisation formula to solve for the fixed monthly repayment that fully pays off the loan by the end of the term. With a balloon set, it uses the standard present-value-of-annuity-plus-balloon formula: the repayment is set so the present value of all monthly repayments, plus the present value of the balloon due at the end, equals the loan amount — the same underlying approach used by this site's Balloon Payment Calculator.
Assumptions and behaviour
- Assumes a fixed interest rate for the full term — commercial loans are often reviewed or repriced periodically in practice.
- Loan term defaults to 15 years, reflecting that commercial loans are typically shorter than the 25–30 year terms common for home loans.
- Balloon/residual is entered as a percentage of the loan amount, capped at 100%.
Limitations
- Doesn't include establishment fees, valuation fees, line fees, or other charges commonly attached to commercial lending.
- Doesn't model interest-only periods, which are common on commercial facilities.
- The balloon amount here isn't tied to any specific lender's maximum residual policy — check with your lender or broker.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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