Loan Extension Negotiation Calculator

Short extensions preserve relationships and avoid forced refinance in bad markets.

Loan balance

Extension fee %

Rate increase %

Extension months

Extension cost

$250,000

Fee cost

$125,000

Additional interest

$125,000

How the math works

Fee = balance × fee %. Additional interest = balance × rate increase × months/12.

$25M × 0.5% = $125k fee + $25M × 0.5% × 1 yr = $125k interest = $250k extension cost.

How to Use

Enter extension fee %.
Enter rate increase %.
Enter loan balance.
Enter extension months.
Read extension cost.

Frequently Asked Questions

Extension terms?

Fee 0.25-1% of loan balance. Rate bump 25-100 bps. Term: 6 months to 2 years. Principal paydown sometimes required (10-25%). Additional covenants (DSCR test, reserve deposits). Negotiate from strength.

Lender incentives?

Avoids foreclosure costs ($150k-1M legal/process). Avoids forced property liquidation at distress pricing. Preserves relationship with performing borrower. Extension fee creates current income. Most lenders prefer extension to foreclosure.

Negotiation leverage?

Property performance (if operating well, strong case). Market conditions (rate outlook). Borrower financial strength. Alternative lenders available. Lender cost basis (distressed lender may accept more). Professional broker with lender relationships critical.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.