BOLLARDCommercial Capital

03Calculator

Amortisation, interest-only and the balloon

Commercial loans amortise over twenty-five years and mature in seven. This shows the payment, the schedule, and the number that surprises borrowers at maturity — the balance still outstanding.

  • Balloon at maturity
  • Month and year schedule
  • Principal against interest per period
  • Cumulative interest curve

Illustrative only. Bollard is a fictional business built as a website demonstration — the figures below are worked examples, not an offer, a quote or a rate sheet.

Your figures

Set maturity shorter than amortisation and the loan balloons. Set them equal and it pays off — which is what the SBA debenture does, and almost nothing else in commercial lending.

Monthly payment

—

after any interest-only period

Balloon at maturity

—

Interest paid to maturity

—

excluding the balloon

Interest-only payment

—

while it applies

Balance

What is left, and when

The dashed line is maturity

Loan balance falling from the original amount, with the balloon marked at maturity

Split

Principal against interest, year by year

Stacked columns showing how much of each year's payments is interest and how much is principal

InterestPrincipal

Schedule

Every payment to maturity

YearPaymentInterestPrincipalBalance

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Assumptions and limits

What this model does and does not do

A fixed rate, a level payment, and monthly compounding — the standard commercial convention. Actual/360 accrual, which several lenders use, produces a slightly higher effective cost and is not modelled here.

The interest-only period sits at the front of the loan and does not extend the amortisation; when it ends the payment steps up to fully amortise over the remaining schedule.

Escrows for taxes and insurance, servicing fees and any prepayment penalty are excluded. So is the possibility that your rate is not fixed.

The balloon shown is the balance on the maturity date. It is a real obligation and not a formality.

Deal intake

Have someone check your numbers

Send the scenario and a real desk would come back with the two or three structures worth pricing.

This is a demonstration site. Forms validate and confirm on screen; nothing is transmitted, emailed or stored.

The other five

01504 stackWhat does a three-part capital stack actually cost me each month?02Loan sizingHow large a loan does this property actually support, and which test stops it?04Lease vs ownIs buying the building better than renewing the lease?05Carry costWhat does short-term money cost me before the take-out?06RefinanceDoes this refinance pay back before I sell or mature?

Next bay

Model it, then let someone check it

Calculators answer the arithmetic. What they cannot tell you is whether a lender will believe your net operating income, or which programme your equity actually supports.

Submit a deal scenario Work the numbers first

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