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Monthly payment, balloon payoff, DSCR — for commercial real estate, hotel, multifamily, construction, and SBA loans. Supports interest-only periods and amortization periods longer than the maturity term.
How commercial mortgages work
Most commercial real estate loans are structured as balloon loans: payments are calculated on a longer amortization schedule (often 25–30 years) but the loan matures earlier (typically 5–10 years), at which point the remaining principal balance — the balloon — is due in full.
The borrower's standard exit is either to (a) refinance into a new loan at maturity, (b) sell the property, or (c) pay off the balloon from accumulated capital. This is why a clean refinance plan matters more than the specific monthly payment for most CRE borrowers.
Interest-only periods
Many commercial loans include an initial interest-only period (1–10 years) before principal-and-interest payments begin. This lowers early cash-flow burden during lease-up, value-add execution, or stabilization. Note: the IO period doesn't reduce the balloon — principal isn't being paid down during IO.
DSCR — Debt Service Coverage Ratio
DSCR is the property's net operating income divided by annual debt service. Most lenders want 1.20–1.30 minimum; hotels and value-add deals often need 1.30–1.40. A DSCR below 1.0 means the property doesn't generate enough income to cover the loan payments.
From estimate to term sheet
This calculator gives a directional estimate. Real lender pricing depends on property type, sponsor experience, market, leverage, recourse, and current debt-market conditions. Submit your deal to Caplli and we'll match it against current lender appetite — most term sheets within 5–10 business days.