How this commercial refinance comparison works
The same payoff balance is modelled under two fixed-rate, fully amortizing schedules. Each nominal annual rate is divided by 12 for equal monthly principal-and-interest payments. Fees are paid upfront and do not increase the new principal.
US commercial refinance tools may focus on different questions: payment and interest savings, new loan sizing from property income and value, or cash-out proceeds. This page compares two quoted repayment schedules only. It does not size a loan from NOI, DSCR or LTV, calculate cash-out, or estimate lender approval.
Worked example
For a $1,200,000 payoff balance, compare an 8.2% rate over 144 months with a written 7.1% offer over the same 144 months, and enter $6,000 of closing costs. The estimated current payment is $13,121.39 a month and the new payment is $12,404.63, a $716.75 monthly difference.
Estimated interest is $689,479.56 on the current schedule and $586,267.21 on the proposed schedule. The $103,212.35 interest difference becomes $97,212.35 after the entered $6,000 costs. At $716.75 lower monthly payments, the costs are recovered after 9 months. This is a hypothetical comparison, not a lender quote.
Closing costs, prepayment and term changes
Include the costs shown in your documents, which may include a prepayment charge or defeasance, lender fees, appraisal, title and legal costs. Use actual quotes: this tool cannot calculate a yield-maintenance payment or other contract-specific payoff amount.
Changing the new term can lower a monthly payment while raising total interest. Compare both totals. The break-even estimate counts monthly-payment savings only while both schedules are active. It excludes cash-out, variable rates, interest-only or balloon structures, tax, escrow, DSCR/LTV qualification and fees added to principal.
Choose the right commercial loan tool
Use the commercial mortgage calculator for a basic payment estimate, or the business loan calculator for a standard term-loan scenario. A property refinance's income and collateral sizing requires lender-specific underwriting that this comparison does not perform.
Inputs for the US commercial loan refinance calculator
Loan payoff balance today
Enter the amount required to pay off the current debt. The proposed loan is assumed to refinance this same principal.
Current fixed annual rate
Enter the nominal rate currently charged, not a variable-rate forecast or a fee-inclusive APR.
Current term remaining
Months until the existing loan would be fully repaid under the entered fixed-rate schedule.
New quoted fixed annual rate
Use a written nominal rate from the proposed lender. Advertised rates may not apply to the property or borrower.
New loan term
Months to repay the new balance. A longer term can reduce the payment but add interest.
Estimated switching costs
Include quoted prepayment or defeasance charges, lender fees, appraisal, title and legal costs paid upfront.
CALCULATOR QUESTIONS
Commercial loan refinance calculator US questions
Does this estimate a commercial refinance loan amount?
No. It compares repayment schedules for the same payoff balance. It does not size proceeds using property value, NOI, DSCR or LTV.
Does it include a prepayment penalty or defeasance?
Enter a written payoff or cost estimate in switching costs. The tool does not calculate contract-specific prepayment amounts.
Why can a lower monthly payment cost more overall?
A longer term spreads repayment over more months. Check the new term's total interest and net interest saving after costs.
Can I use this for interest-only commercial debt?
No. This page models fixed-rate principal-and-interest amortization. It does not model a balloon or interest-only period.