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Commercial Mortgage Repayment Excel Template Free Download
Evaluating the repayment structure of a commercial mortgage is a critical step for real estate investors and businesses managing property financing.
The Free Commercial Mortgage Repayment Excel Template from Dexovise is a downloadable tool that calculates monthly payments, total interest, and a detailed amortization schedule for commercial real estate loans.
Obtain this commercial loan repayment excel template to assess your mortgage costs with precision.
Key Features of the Commercial Mortgage Repayment Excel Template
The commercial mortgage repayment excel template is designed to assist businesses and investors in analyzing repayment obligations for commercial real estate loans.
It provides a range of capabilities to support accurate financial planning.
The following features highlight its functionality:
- Supports loan terms up to 360 months, accommodating long-term commercial mortgages for property acquisitions.
- Allows selection of compounding frequencies, such as monthly, quarterly, or semi-annually, to reflect commercial loan agreements.
- Provides repayment frequency options, including monthly or quarterly, aligning with typical commercial mortgage schedules.
- Includes fields for fees, such as origination or prepayment penalties, to calculate total financing costs accurately.
- Generates a chart illustrating the repayment breakdown, separating principal, interest, and fees for clear understanding.
- Calculates monthly payments, total interest, effective APR, and debt service coverage ratio (DSCR), offering a comprehensive financial overview.
- Produces a commercial mortgage amortization schedule detailing principal and interest for up to 360 months.
- Features a yearly progress column in the amortization schedule excel free download, simplifying long-term repayment tracking.
- Supports fixed and variable interest rates, as well as balloon payments, tailored for commercial real estate loan templates.
- Offers a user-friendly interface with clear instructions, ensuring accessibility for real estate investors and business owners.
These features make the excel commercial mortgage calculator free download an essential tool for managing commercial mortgage repayments effectively.
More Financial Templates
How to Use the Commercial Mortgage Repayment Excel Template
The commercial mortgage repayment excel template enables users to calculate and track repayments for commercial real estate loans by entering specific financial details.
This free commercial mortgage repayment excel tool simplifies the analysis of complex mortgage obligations.
Below are the steps and inputs required to use the template:
- Loan Amount: Enter the principal amount borrowed, representing the funds obtained for commercial property financing.
- Interest Rate: Provide the annual interest rate, expressed as a percentage, which determines the cost of the mortgage.
- Compounding Frequency: Select from monthly, quarterly, or semi-annually to indicate how interest is calculated.
- Loan Term: Specify the repayment period in months (up to 360) or years, accommodating commercial mortgage terms up to 30 years.
- Repayment Frequency: Choose monthly or quarterly payments to align with the mortgage’s repayment schedule.
- Fees: Input fees, such as origination fees or prepayment penalties, to include in the total cost analysis.
To use the commercial mortgage amortization schedule, download the template, open it in Microsoft Excel, and follow the provided instructions to enter your data into the designated fields.
The template will generate monthly payment amounts, the effective APR, and a detailed amortization schedule, providing a clear view of your commercial mortgage repayment structure.
The Formula and Calculations with an Example
The commercial mortgage repayment excel template calculates monthly payments and total financing costs for commercial real estate loans using a standard loan amortization formula.
This process incorporates the loan amount, interest rate, loan term, compounding frequency, and applicable fees to determine the repayment structure.
Below, the formula, its Excel equivalent, and an example illustrate how the template operates.
The formula for the monthly payment is expressed as follows:
Monthly Payment = [P × (r / n) × (1 + r / n)^(n × t)] ÷ [(1 + r / n)^(n × t) – 1]
Where:
- P = Loan principal (amount borrowed)
- r = Annual interest rate (as a decimal)
- n = Number of compounding periods per year
- t = Loan term in years
In Microsoft Excel, this is implemented using the PMT function:
=PMT(rate/n, n*t, -P)
Where “rate” is the annual interest rate, “n” is compounding periods per year, “t” is years, and “P” is the loan amount (negative to reflect outgoing payments).
The excel commercial mortgage calculator free download applies this formula automatically, factoring in fees like origination fees and calculating the debt service coverage ratio (DSCR) to assess loan affordability.
Example Calculation: Consider a business financing a commercial property:
| Category | Details |
| Loan Amount | $500,000 |
| Annual Interest Rate | 5% (0.05) |
| Loan Term | 20 years (240 months) |
| Compounding Frequency | Monthly (n = 12) |
| Repayment Frequency | Monthly |
| Origination Fee | $5,000 |
| Property Net Operating Income (NOI) | $75,000/year |
Using the Excel PMT function:
- Monthly rate = 0.05 ÷ 12 = 0.004167
- Total payments = 12 × 20 = 240
- PMT = PMT(0.004167, 240, -500,000) ≈ $3,299.78
Total repayment over 240 months is 3,299.78 × 240 = $791,947.20, with interest of $791,947.20 – $500,000 = $291,947.20, plus the $5,000 fee, yielding a total cost of $796,947.20.
The DSCR is calculated as NOI ÷ Annual Debt Service ($75,000 ÷ [3,299.78 × 12] ≈ $75,000 ÷ $39,597.36 ≈ 1.89), indicating strong loan affordability.
The commercial mortgage amortization schedule details each payment’s principal and interest, providing a clear repayment breakdown for the commercial loan repayment excel template.
What Are Commercial Mortgages and Their Key Metrics
- Debt Service Coverage Ratio (DSCR): Measures a property’s ability to cover loan payments, calculated as Net Operating Income (NOI) ÷ Annual Debt Service. A DSCR above 1.25 is typically required by lenders, indicating sufficient cash flow.
- Loan-to-Value Ratio (LTV): Represents the loan amount as a percentage of the property’s appraised value (e.g., $500,000 loan ÷ $625,000 value = 80% LTV). Lower LTVs reduce lender risk.
- Debt Yield: Assesses the property’s income relative to the loan amount, calculated as NOI ÷ Loan Amount (e.g., $75,000 ÷ $500,000 = 15%). Higher yields indicate stronger returns.
- Balloon Payment: A large final payment due at the end of a shorter-term loan, common in commercial mortgages, requiring refinancing or cash reserves.
- Cap Rate: Evaluates property profitability, calculated as NOI ÷ Property Value. It helps investors compare investment opportunities.
Benefits of Using the Commercial Mortgage Repayment Excel Template
The commercial mortgage repayment excel template offers significant advantages for businesses and investors managing commercial real estate loans. It provides a comprehensive analysis of financing costs and repayment schedules.
The following sentences outline the benefits of this tool:
- It calculates monthly payments, total interest, and effective APR, presenting a clear view of commercial mortgage costs.
- The commercial mortgage amortization schedule tracks principal and interest over up to 360 months, supporting long-term financial planning.
- Flexible inputs for fees and repayment frequencies ensure alignment with commercial real estate loan terms.
- A chart illustrates the breakdown of principal, interest, and fees, clarifying the repayment structure for better comprehension.
- The user-friendly design with clear instructions simplifies the analysis of complex commercial mortgage repayment details.
These benefits make the free commercial mortgage repayment excel tool an essential resource for managing commercial mortgage obligations with precision.
Why Plan Your Commercial Mortgage Repayment with Our Template
Making a repayment plan for a commercial mortgage is an important step for businesses and investors to manage their financial obligations in commercial real estate.
The commercial mortgage repayment excel template helps calculate and track payments, total interest, and other costs for a commercial real estate loan, assisting in organizing a business’s finances.
The following sentences describe why this tool is necessary for planning:
- It calculates the monthly payment amounts needed for a commercial mortgage, showing how these fit within a business’s property income.
- The commercial mortgage amortization schedule shows the principal and interest paid each month for up to 360 months, helping a business plan its financial commitments over many years.
- It finds the debt service coverage ratio, which shows if the property’s income can cover the loan payments, as required by lenders for commercial real estate loans.
- Changing details like the loan term or fees in the template shows how these affect the total payments and costs, helping a business make better financing choices.
- The excel format allows a business to save and review repayment details anytime, making it easier to plan finances for real estate investments.
This template is helpful because it helps businesses understand and organize their commercial mortgage payments to maintain financial stability.
