Commercial Loan Calculator

Please fill in each green, blue and orange box to determine your payment as well as the maximum loan amount allowed by Loan-to-Value Limitations, Debt Service Coverage Ratio requirements and/or Debt Yield Ratio requirements. The yellow boxes will display your answers.

Step 1

Enter in information you know

Loan Amount Desired
Value of the Subject Property
Gross Income of Subject Property
Operating Expense of Subject Property

Typical Rates	680+ FICO	680- FICO
Conventional	5-8%	8-15%
SBA	4-6%	N/A
USDA	4-6%	N/A

Typical Amort.	Standard Prop.	Business Prop.
Conventional	30yrs	15yrs
SBA	30yrs	15yrs
USDA	30yrs	15yrs

Step 2

Enter in desired rate and amortization period. Use the adjacent table to determine what rate and amortization period is appropriate for your situation.

Interest Rate
Amortization Period (in Years)

Step 3

Enter in Loan-to-Value limits, Debt Service Coverage Ratio requirements and Debt Yield requirements. Use the adjacent tables to determine what Loan-to-Value limits, Debt Service Coverage Ratio Requirements and Debt Yield requirements are appropriate for your situation.

Lender's Loan-To-Value Limit
Lender's DSCR Requirement*
Lender's Minimum Debt Yield Ratio

Step 4

View Results Each section below breaks down a specific metric used by lenders to qualifty borrowers for a loan. Lenders will use always use the weakest metric of a loan scenario to base their loan off of. Please go section V for the final amount.

i. Payment (Payment Calculator)

Loan Amount (If unsure, use desired loan amount)
Property Value
Interest Rate
Amortization Period (in Years)
Payment Amount

Typical LTV Limits	Conventional	SBA
Office	65%	90%
Multifamily	75%	90%
Industrial/Self-Storage	55%	65%
Retail	65%	90%
Hotel/Motel/Gas Stations	55%	65%
Land	55%	N/A

Typical DSCR Requirements	Conventional	SBA
Office	1.25	1.25
Multifamily	1.25	1.25
Industrial/Self-Storage	1.50	1.50
Retail	1.25	1.25
Hotel/Motel/Gas Stations	1.25	1.25
Land	1.50	N/A

Typical Debt Yield Requirements	Conventional
Debt Yield Ratio	10%

ii . Loan-to-Value (Loan-to-Value Calculator)

Loan-to-Value or LTV is a term that expresses the ratio of a loan to the value of a property. In other words, it reflects what someone "owes" on a property in comparison to what it is "worth".

Subject Property Loan-to-Value
Loan Amount Desired

Max. Loan-to-Value Allowed by Lender
Loan Amt. Based on Lender LTV Limits

iii . Debt Service Coverage Ratio Calculator (DSCR)

Debt Service Coverage Ratio or DSCR is defined as a ratio that demonstrates an entity’s ability to produce enough cash to cover its debts. Simply put, it’s a ratio that expresses what you bring in vs what you have to pay out.

Annual Gross Income
Operating Expenses
Net Operating Income (NOI) - Property
Mortgage Payment - Property
Debt Service Coverage Ratio

Lender DSCR Requirement*
Max. Loan Pymt. Based on Lender DSCR
Max. Loan Amt. Based on Lender DSCR

*Please note, there is a rounding error when you set the Lender DSCR Requirement to the calculated Debt Service Coverage Ratio. This is due to the calculated Debt Service Coverage Ratio only going to two decimal places.

iv Debt Yield Ratio Calculator (Loan Amounts $5,000,000+)

The Debt Yield Ratio is typically used on large loans (over $5million) and is used to determine the cash-on-cash return on the lenders money if it foreclosed the first day after the loan was completed. The Debt Yield Ratio represents the return the property’s income should provide in event of foreclosure.

Net Operating Income (NOI) - Property
Loan Amount
Debt Yield Ratio

Lender's Minimum Debt Yield Ratio
Max. Loan Amt at Lenders Min. Debt Yield Ratio

v. Final Results

Lenders will typically base their max loan amounts on the weakest of the three metrics listed above. The number below is the maximum loan amount a lender will be willing to provide given the information you provided.

Loan Amount You Qualify For Based On LTV
Loan Amount You Qualify For Based On DSCR
Loan Amount You Qualify For Based On Debt Yield Ratio
Your Loan Amount Based On Values Inputed

Max. Loan Amount Lender Will Provide Based Off LTV Limits
Max. Loan Amount Lender Will Provide Based Off DSCR
Max. Loan Amount Lender Will Provide Based Off (DYR)
Maximum Loan Amount Based of Lender's Limits

Terms

Loan Amount: Amount specified in the mortgage/deed contract that the lender provides and the borrower agrees to repay.

Property Value: What the subject property (the collateral) is worth TODAY.

Interest Rate: Rate charged to the borrower for the use of the lenders money.

Amortization Period: Number of years it takes to repay the loan in full.

Payment Amount: Your proposed monthly mortgage payment based on the information provided.

Subject Property LTV: Loan-to-Value of the subject property based on the information provided.

Loan Amt Based on Max Lender LTV: This is the largest loan amount the lender is willing to provide based on their LTV limits.

Annual Gross Income: How much income the property generates before taking out operating expenses.

Operating Expenses: Expenses incurred in operating/running the property.

Net Operating Income: Annual Gross Income - Operating Expenses

Debt Service Coverage Ratio: Ratio that expresses cash flow in vs. cash flow out.

Lender DSCR Requirement: Lender's minimum Debt Service Ratio Requirement

Max. Loan Payment Based on Lender DSCR: Maximum monthly mortgage payment size based on lender's Debt Service Requirements

Max. Loan Amount Based on Lender DSCR: Maximum loan amount based on lender's Debt Service Requirements

Debt Yield Ratio: Calculates the cash-on-cash return on the lenders money if it foreclosed the property day 1

Lender's Minimum Debt Yield Ratio: Minimum return from the property's NOI the lender is willing to accept in the event of foreclosure

Max. Loan Amount at Lenders Minimum Debt Yield Ratio: Maximum loan amount based on the lender's minimum required Debt Yield

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