Loan Repayment Calculator
Estimate repayments on a commercial property loan, principal and interest or interest only, at any payment frequency.
How loan repayments are calculated
A principal and interest repayment is sized so that each payment covers the interest accrued that period, with the remainder reducing the principal, and the balance reaches exactly zero on the final payment. The annual rate is divided by the number of payments a year to give the rate per period; interest only repayments simply pay that period's interest, leaving the principal untouched.
payment = principal × r ÷ (1 − (1 + r)⁻ⁿ), where r = rate per period and n = total payments
Commercial lending rates and terms differ from residential: shorter terms, lower loan-to-value ratios and rates priced to the asset and covenant. Use the rate your lender actually quoted.
Frequently asked questions
How are principal and interest repayments calculated?
With the standard amortisation formula: each payment covers the interest accrued that period plus enough principal to reach zero exactly at the end of the term. Early payments are mostly interest; the balance shifts to principal over time.
Why choose interest only?
Lower payments preserve cash flow, which suits investors prioritising yield or expecting to sell or refinance. The trade-off is that the debt never shrinks and total interest is higher over the life of the loan.
Does paying fortnightly save interest?
Genuinely fortnightly payments (half the monthly amount, 26 times a year) make the equivalent of one extra monthly payment per year, which shortens the loan. This calculator prices each frequency exactly rather than using that shortcut, so the saving shows up as lower total interest.
Is this what my bank will quote?
Close but not identical. Lenders add fees, round payments, and may price leap years and payment dates precisely. Treat this as an estimate for comparing scenarios.
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The calculators on this site are provided for general information only. Results are estimates, do not account for the terms of any specific lease, loan or property, and do not constitute financial, legal or valuation advice.