Commercial Loan Calculator

Question 1

What is a commercial loan?

Answer

A commercial loan is financing for business purposes, most commonly for commercial real estate, but also for equipment, working capital, or business acquisition.

Question 2

What is NOI (Net Operating Income)?

Answer

Net Operating Income is the annual income generated by a property after operating expenses but before debt service. It is calculated as gross rental income minus vacancy and operating expenses.

Question 3

What is cap rate?

Answer

The capitalization rate is NOI divided by property price. It measures the expected rate of return on a commercial property investment.

Question 4

What is cash-on-cash return?

Answer

The annual pre-tax cash flow divided by the total cash invested (down payment). It measures the return on the actual cash invested.

Question 5

What is a typical commercial loan term?

Answer

Commercial loans typically have terms of 5-25 years with amortization schedules of 20-30 years and balloon payments.

Question 6

What is a commercial loan?

Answer

A commercial loan is financing for business purposes, most commonly for commercial real estate, but also for equipment, working capital, or business acquisition.

Question 7

What is NOI (Net Operating Income)?

Answer

Net Operating Income is the annual income generated by a property after operating expenses but before debt service. It is calculated as gross rental income minus vacancy and operating expenses.

Question 8

What is cap rate?

Answer

The capitalization rate is NOI divided by property price. It measures the expected rate of return on a commercial property investment.

Question 9

What is cash-on-cash return?

Answer

The annual pre-tax cash flow divided by the total cash invested (down payment). It measures the return on the actual cash invested.

Question 10

What is a typical commercial loan term?

Answer

Commercial loans typically have terms of 5-25 years with amortization schedules of 20-30 years and balloon payments.

Commercial Loan Calculator

Formula

How It Works

Examples

$1,000,000 commercial property, 25% down, 7%, 20 years

Frequently Asked Questions

What is a commercial loan?

What is NOI (Net Operating Income)?

What is cap rate?

What is cash-on-cash return?

What is a typical commercial loan term?

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Commercial Loan Calculator

Formula

How It Works

Examples

$1,000,000 commercial property, 25% down, 7%, 20 years

Frequently Asked Questions

What is a commercial loan?

What is NOI (Net Operating Income)?

What is cap rate?

What is cash-on-cash return?

What is a typical commercial loan term?

Related Calculators

Related Articles