Free tools / DSCR and Loan Sizing
DSCR and Loan Sizing
Mode A sizes the largest loan your NOI supports at a target debt service coverage ratio. Mode B checks coverage, debt yield, LTV, and cash flow for a specific loan.
Inputs
Example inputs, not market dataStarting values are made-up examples to show the math. They are not market data. Replace them with your own figures. Nothing you type leaves your browser.
Results
Updates as you typeHow this works
Monthly payment = loan x r / (1 - (1 + r)^-n), where r = annual rate / 12 and n = amortization years x 12- At a 0% rate the payment is straight-line:
loan / n - Interest-only:
annual debt service = loan x annual rate DSCR = NOI / annual debt service- Max loan (Mode A):
max annual debt service = NOI / target DSCR, thenloan = monthly payment x (1 - (1 + r)^-n) / r(orannual debt service / rateif interest-only) Debt yield = NOI / loanandLTV = loan / valueCash flow after debt = NOI - annual debt service
Lenders also cap loans by LTV and debt yield. The real loan is usually the smallest of the three tests.
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