Commercial loan amortization schedule
On an illustrative $2,000,000 loan at 6.50% amortizing over 30 years, the first payment of $12,641.36 is $10,833.33 interest and only $1,808.03 principal. By year 10 principal is $40,063 of the year's payments, and $1,695,523 is still owed. Build your own schedule below, month by month or by year, and download it.
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Scheduled payment
$12,641.36
–
- Balloon at maturity
- $1,695,523
- Interest over the term
- $1,212,486
- Principal over the term
- $304,477
- Payments made
- 120
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| Year | Payments | Interest | Principal | Balance |
|---|
How to read a commercial amortization schedule
Each row follows one rule: Each period the balance grows by interest earned and falls by the payment made; the remainder at maturity is the balloon1. The payment is fixed for the amortizing months, so the interest share starts high and falls while principal rises. The last row's balance is the balloon. In the illustration, year 1 pays $129,342 of interest and $22,355 of principal; year 10 pays $111,633 and $40,063.
30/360 or Actual/360
30/360: interest is computed on twelve 30-day months, so every monthly interest amount is the same2. That is the schedule most calculators show. Many agency and conduit notes use Actual/360 instead (Actual/360 is standard on Freddie Mac Conventional Small; 30/360 is available3). The payment stays the same. On an amortizing Actual/360 loan the fixed payment's interest share rises in 31-day months and principal falls4. Illustration: on the same loan starting in January 2027, the 31-day January accrues $11,194.44 of interest and the 28-day February $10,103.80. Over the full term the Actual/360 schedule leaves a balloon of $1,720,609, against $1,695,523 under 30/360.
When the schedule changes
- Interest-only months come first and pay interest only; amortization then starts on the full balance over the full amortization period, which is how most notes write it.
- Extra principal reduces the balance immediately. The scheduled payment stays the same, so the loan pays off sooner and the balloon shrinks.
- Floating rates re-run the schedule every time the rate resets. Use today's rate for a baseline and a higher rate as a stress case.
- Fully amortizing programs such as FHA 223(f) have no balloon: set the term equal to the amortization. HUD states it as Fully amortizing, level monthly payments (no balloon)5.
Method and formula
payment = L x i / (1 - (1 + i)^-n), i = rate / 12, n = amortization months interest (30/360) = balance x rate / 12; interest (Actual/360) = balance x rate / 360 x days in month principal = payment - interest + extra; balance = balance - principal interest-only months: payment = interest (+ extra); balloon = balance after the last payment of the term
Questions people ask
Why does so little of my early payment go to principal?
Interest is charged on the outstanding balance, which is highest at the start. The payment is fixed, so the interest share is largest early and the principal share grows each month as the balance falls.
Does paying extra principal shorten the loan or lower the payment?
In this schedule, extra principal shortens the loan and cuts the balloon; the scheduled payment stays the same, which is how most commercial notes work. Check your note first: many commercial loans charge a prepayment premium on extra principal, or do not allow partial prepayment at all.
Why does my lender’s schedule differ by a few dollars?
Usually the interest convention. Under Actual/360 the interest changes with the days in each month, so a 31-day month pays less principal than a 30-day month. Pick Actual/360 and the first payment month to match your note.
Related tools and guides
Sources
- 12 CFR Part 1026, Appendix J (Regulation Z actuarial method), eCFR, as of October 29, 2026
- Fannie Mae Form 6001.MCFA schedules and Form 6104.01 (05-20) Standard Yield Maintenance schedule, as filed with the SEC (New England Realty Associates 8-K, Ex. 10.1), as of June 16, 2022
- Freddie Mac Multifamily, Optigo Conventional Small product sheet (4/26), as of April 2026
- Freddie Mac Multifamily Note, Fixed Rate Yield Maintenance Only (Revised 5-5-2017), as filed with the SEC (Inland Residential Properties Trust, Ex. 10.41), as of July 27, 2017
- HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021), as of March 19, 2021
- CRED iQ, CRE Loan Spreads Tighten Across Property Types (Apr 17, 2026), as of March 31, 2026
- Northmarq, Rates & Spreads (Life Co, Multifamily and Commercial), as of October 22, 2026
- KKR Real Estate Finance Trust 10-Q, Q3 2026, as of September 30, 2026
- Granite Point Mortgage Trust 10-Q, Q2 2026, as of June 30, 2026
- Blackstone Mortgage Trust 10-Q, Q3 2026, as of September 30, 2026
- U.S. Department of the Treasury, daily par yield curve rates, as of October 30, 2026
- Federal Reserve Bank of New York, as of October 30, 2026
How we check figures: methodology and editorial policy.
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