Commercial Real Estate Loan Calculator
How to read your results
The numbers lenders look at.
DSCR (debt service coverage)
Net operating income divided by annual loan payments. Most lenders want 1.20x to 1.25x or better; 1.40x and above usually earns better pricing.
LTV and LTC
Loan-to-value compares the loan to the property's value. Loan-to-cost compares it to the total project cost on construction and bridge deals. Lower means less risk and better terms.
Debt yield and cap rate
Debt yield is NOI divided by the loan amount; many lenders want 8 to 10 percent or more. Cap rate is NOI divided by price or value and shows the property's unlevered return.