Tools

Loan sizing calculator

Lenders size loans to the lowest of several tests. See which one limits your loan, and by how much.

Property

Net operating income, annual Net operating income: a year of revenue minus operating expenses, before loan payments. Lenders usually underwrite their own, slightly lower, number.

Value or purchase price Appraised value or the purchase price, whichever the lender uses.

Loan terms

Interest rate (%) The interest rate the lender would charge. We prefill a typical rate from today's benchmarks.

Amortization (years) Years over which payments are calculated. Longer amortization means lower payments and a larger loan for the same income.

Interest-only? Interest-only loans have no principal payments, so the coverage test allows a bigger loan.

Lender tests

Max LTV (%) Loan-to-value: the maximum share of the value a lender will lend. 65% means a $650,000 loan on a $1,000,000 property.

Min DSCR (x) Debt-service coverage ratio: how many times the income covers the loan payment. 1.25x means $1.25 of income for every $1.00 of payment.

Min debt yield (%) Debt yield: income divided by the loan amount. Some lenders require 8 to 10% regardless of interest rates.

Estimated maximum loan

-

Limited by-

Annual debt service-

Implied LTV-

Implied DSCR-

Illustrative only. Lenders also consider sponsorship, market, property condition, reserves and their own underwritten NOI, which is often lower than the seller's.

Loan sizing calculator

-

Tell us about your deal.