BUYERS & OWNERS · FREE TOOL
Mortgage & Amortization
Full payment breakdown, year-by-year amortization, balloon balance, and what extra principal actually saves you.
Most commercial loans amortize over 25 years but mature in five. This shows both: what you pay each month, and the balloon you'll be refinancing — plus what an extra few hundred a month does to the payoff.
Your numbers
Pre-filled with realistic DFW-market estimates. Change anything — results update as you type.
Most commercial loans balloon at 5, 7 or 10 years even when amortized over 25.
Every input is saved in the link — text it to a partner and they'll see the exact same scenario.
MONTHLY PAYMENT (PITI)
$19,511
$13,553 principal & interest + $5,958 taxes & insurance
Loan amount
$1,875,000
Principal & interest
$13,553/mo
Taxes & insurance escrow
$5,958/mo
Interest-only payment
—
Balance at year 5 (balloon)
$1,714,707
Interest paid through year 5
$652,864
Total interest (full payoff)
$2,190,789
Total of payments
$4,065,789
Payoff time
25.0 yrs
Interest saved by extra principal
$0
Loan-to-value
75.0%
Estimated cash to close
$668,750
Origination points
$18,750
Effective rate per $1 borrowed
$1.17
At the end of year 5 you still owe $1,714,707 — that's the balloon you refinance or pay off. Plan the exit before you close, not in year four.
Texas taxes and insurance add $5,958/mo. Counties reassess to your purchase price after a sale, so budget above the seller's current bill.
Want a second opinion on these assumptions? A 25-year amortization on a 5-year term is standard here — the refinance risk is the part worth talking through.
| Year | Interest | Principal | Escrow | Total paid | Balance |
|---|---|---|---|---|---|
| Year 1 | $135,032 | $27,599 | $71,500 | $234,132 | $1,847,401 |
| Year 2 | $132,964 | $29,668 | $71,500 | $234,132 | $1,817,733 |
| Year 3 | $130,740 | $31,892 | $71,500 | $234,132 | $1,785,841 |
| Year 4 | $128,349 | $34,282 | $71,500 | $234,132 | $1,751,559 |
| Year 5 | $125,779 | $36,852 | $71,500 | $234,132 | $1,714,707 |
| Year 6 | $123,017 | $39,614 | $71,500 | $234,132 | $1,675,092 |
| Year 7 | $120,048 | $42,584 | $71,500 | $234,132 | $1,632,508 |
| Year 8 | $116,856 | $45,776 | $71,500 | $234,132 | $1,586,732 |
| Year 9 | $113,424 | $49,207 | $71,500 | $234,132 | $1,537,525 |
| Year 10 | $109,736 | $52,896 | $71,500 | $234,132 | $1,484,629 |
| Year 11 | $105,771 | $56,861 | $71,500 | $234,132 | $1,427,768 |
| Year 12 | $101,509 | $61,123 | $71,500 | $234,132 | $1,366,646 |
| Year 13 | $96,927 | $65,705 | $71,500 | $234,132 | $1,300,941 |
| Year 14 | $92,002 | $70,630 | $71,500 | $234,132 | $1,230,311 |
| Year 15 | $86,708 | $75,924 | $71,500 | $234,132 | $1,154,387 |
| Year 16 | $81,016 | $81,615 | $71,500 | $234,132 | $1,072,772 |
| Year 17 | $74,899 | $87,733 | $71,500 | $234,132 | $985,040 |
| Year 18 | $68,322 | $94,309 | $71,500 | $234,132 | $890,730 |
| Year 19 | $61,253 | $101,378 | $71,500 | $234,132 | $789,352 |
| Year 20 | $53,654 | $108,977 | $71,500 | $234,132 | $680,375 |
| Year 21 | $45,485 | $117,146 | $71,500 | $234,132 | $563,228 |
| Year 22 | $36,704 | $125,927 | $71,500 | $234,132 | $437,301 |
| Year 23 | $27,265 | $135,367 | $71,500 | $234,132 | $301,934 |
| Year 24 | $17,118 | $145,513 | $71,500 | $234,132 | $156,421 |
| Year 25 | $6,211 | $156,421 | $71,500 | $234,132 | $0 |
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Questions people ask
Why is my commercial loan balance so high after five years?
Because commercial loans usually amortize over 25 years but mature in five. Early payments are mostly interest, so the balance at maturity — the balloon — is still most of what you borrowed. That balance is what you refinance.
Does paying extra principal actually help?
Yes, and more than most owners expect. Extra principal applies directly to the balance, so it removes every future interest payment that dollar would have carried. This calculator shows the exact interest saved and how much sooner the loan pays off.
Should I include taxes and insurance?
In Texas, yes. Property taxes often run 2.0–2.7% of assessed value and counties reassess to your purchase price after closing, so the escrow piece can rival a big share of principal and interest.
Numbers are a starting point.
Thirty years in DFW and Austin means I know which of these assumptions the market will actually support. Send me your scenario and I'll tell you straight.
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