Commercial Property Loan Repayments Calculator

It estimates your regular repayments (monthly, fortnightly or weekly) on a commercial property loan, plus the total interest, fees, and total cost over the full term. You can compare principal & interest against interest only side by side, which is the question most people are actually trying to answer. Pair it with the borrowing capacity calculator to confirm what you can borrow, and the cash flow calculator to test how repayments fit into your monthly position.

Residential calculators will give you misleading numbers if you use them for commercial purposes, because the underlying assumptions don't match.

Commercial property loan rates are typically higher than residential, terms are often shorter (commonly 15 to 25 years rather than 30), and lenders assess the deal based on the property's income or your business's serviceability rather than personal income alone. The principal & interest versus interest only choice carries different weight too. Many commercial property investors deliberately use interest only for the entire loan term, refinancing or selling at the end, because it improves cash flow during the holding period. That's a reasonable strategy in commercial that would be unusual in residential. Our commercial property loans hub covers the full range of differences if you want to dig deeper.

It's built specifically for commercial property loans, including warehouses, factories, retail premises, medical suites, offices, and mixed-use buildings. The amortisation logic and term ranges (1 to 30 years) match how property lenders structure these loans.

For other types of business finance, the maths is different and you'll get more accurate numbers from purpose-built tools. Business loans are typically shorter term (1 to 7 years) and unsecured or asset-secured, so repayments are calculated differently. A business line of credit and invoice finance facilities don't have fixed repayment schedules at all, since they're revolving or transaction-based products. If you're unsure which product fits your need, book a call and we'll point you at the right structure before you start crunching numbers.

With principal & interest (P&I), every repayment includes both an interest portion and a principal portion. Each period, the interest is calculated on the remaining loan balance, and whatever is left over from your repayment goes toward reducing the principal. By the end of the term, the loan is fully paid off.

Interest only (IO) works differently. You pay only the interest accruing each period, and the principal stays unchanged. At the end of the IO term, you still owe the full original loan amount, which must be refinanced, repaid in full, or converted to P&I.

IO repayments are typically 25 to 35% lower than P&I on the same loan, which improves cash flow but increases total interest paid significantly. Investors often choose IO when rental income covers the interest comfortably and they intend to sell or refinance later. Run the calculator both ways to see the trade-off for your specific scenario.

Interest accrues continuously on the loan balance, so more frequent repayments reduce the balance sooner. With weekly repayments, the principal is whittled down 52 times a year instead of 12, so each subsequent interest calculation is on a slightly smaller balance. The effect is genuine but typically modest, around 0.1 to 0.3% of total interest. The bigger benefit of fortnightly repayments specifically is that most people convert their monthly repayment by simply halving it. Doing that means you make 13 monthly payments per year instead of 12, which can shave years off a long loan term.

The annual cost rate in this calculator is a simplified indicator. It adds up all interest and fees, expresses them as a percentage of the loan amount per year, and shows that as a single number. It's a quick all-in cost figure, not a regulated metric.

A regulated comparison rate under the National Consumer Credit Protection Act requires a specific iterative calculation and standardised assumptions (a $150,000 loan over 25 years for housing) to enable apples-to-apples comparison across lenders. The calculation involves solving for the discount rate that equates the present value of all loan cash flows, including fees, to the principal. That's more complex maths than what we display here. ASIC's MoneySmart has the formal definition. For an actual comparison rate on a specific lender's product, refer to that lender's disclosure document.

Use the rate quoted to you by a lender if you have one. Otherwise, our interest rates page shows the current market range across loan types and is updated regularly.

The rate you actually qualify for depends on the property type, lender, borrowing structure, deposit size, and how the deal is presented. We find Industrial and medical assets generally attract sharper rates than retail or specialty properties.

Typical upfront fees include the application or establishment fee (commonly 0.25% to 1.00% of the loan amount, capped on larger loans), a valuation fee ($600 to $2,500 depending on property complexity), legal fees on the lender side ($1,500 to $4,000), and broker fees if your broker charges directly rather than via lender commission. Owner-occupier loans often attract slightly lower establishment fees than investment loans because of the perceived risk profile.

Ongoing fees vary widely between lenders. Some charge a monthly fee ($10 to $40), others charge an annual line fee on facility size (typically 0.10% to 0.25% per year), and a small number have no ongoing fees at all. When entering ongoing fees in the calculator, convert to an annual figure if your lender quotes monthly.

Worth knowing: when comparing two loan offers, the calculator's total fees output is often more meaningful than the headline rate alone. A lender with a slightly higher rate but no ongoing fees can work out cheaper over the term.

Five practical levers, in roughly the order of impact for most borrowers. Negotiating a sharper interest rate is usually the biggest single lever, since even a 0.25% rate reduction on a $1M loan over 25 years saves roughly $40,000 in total interest. Working with a broker who knows current pricing across multiple lenders matters here. Shortening the loan term reduces total interest substantially, although it increases regular repayments. Switching from interest only to P&I dramatically reduces total interest paid if your cash flow allows. Avoiding unnecessary upfront fees by negotiating fee waivers during the application stage is often overlooked. And finally, fortnightly or weekly repayments instead of monthly can shave additional interest off the total, particularly useful if it aligns with your business cash flow cycle.

If you're an existing borrower wondering whether refinancing makes sense, run your current loan's numbers through this calculator, then run a refinanced version using current market rates. The difference will tell you immediately whether a refinance is worth pursuing. Our team handles refinancing across our commercial property loans panel as a core part of what we do.

If the numbers look workable, the next step depends on where you are in the process. To confirm you can actually borrow this amount against your income, use our borrowing capacity calculator. For the upfront cost of the property purchase itself, the stamp duty calculator covers state-by-state duty rates. If you're still deciding between purchasing premises or continuing to lease, the buy vs rent calculator compares the total cost of each path. For investment scenarios, the yield calculator confirms whether rental income justifies the price, and the cash flow calculator stress-tests how the deal fits into your overall position after repayments, fees, and outgoings.

Once you're confident in the deal, book a free consultation and we'll give you a current rate range across our 60+ lender panel for your specific scenario within 24 hours.