Loans · Commercial

Commercial loan sizing calculator.

Lenders size a commercial loan to the smallest of several tests. Enter yours and see the largest loan each one allows and which one binds.

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Property and lender tests

$
$
Appraised or purchase price. Leave blank to skip the LTV test.
x
Your lender sets this. 1.25 is only an example.
%
Your lender sets this. Example value.
%
NOI divided by loan. Leave blank to skip.
%
Example value. Use your quote.
years

Result

How it is calculated

DSCR test: the most annual debt service is NOI ÷ the minimum DSCR; the loan is the present value of the monthly payments that equal that amount at your rate over the amortization (or annual debt service ÷ rate if interest-only). LTV test: value × maximum LTV. Debt yield test: NOI ÷ minimum debt yield. The largest loan is the smallest of the tests you filled in; the page then shows the DSCR, LTV, debt yield and loan constant (annual debt service ÷ loan) at that loan.

Worked example

NOI $120,000.00, value $1,500,000.00, 7% over 25 years: a 1.25x DSCR allows $1,131,895.23, a 75% LTV allows $1,125,000.00 and a 9% debt yield allows $1,333,333.33. The loan-to-value test binds at $1,125,000.00, which gives a DSCR of 1.26x and a debt yield of 10.67%.

Sources and limits

All tests are your inputs: this page contains no lender minimums. For context, US bank regulators publish supervisory loan-to-value limits in the Interagency Guidelines for Real Estate Lending Policies (12 CFR Part 34, Subpart D, Appendix A, retrieved 2026-10): 65% for raw land, 75% for land development, 80% for commercial construction and 85% for improved property. Those are ceilings for institutions' own policies, not what any lender will offer you. Underwriting NOI, appraised value and rate are the lender's. The commercial real estate DSCR calculator works from the loan to the ratio instead.

FAQ

How much can I borrow on a commercial property?

The smallest of the amounts allowed by your lender's DSCR, loan-to-value and debt yield tests. Enter each test and the page shows all three and the limiting one.

What is debt yield?

Net operating income divided by the loan amount. It ignores the rate and amortization, so it is a cap that does not depend on the payment.

What is a loan constant?

Annual debt service divided by the loan amount, as a percentage. A higher rate or shorter amortization raises it.

Why leave a test blank?

If your lender does not use that test, leave its fields blank and it is left out.

Disclaimer

Estimates only, not financial, tax or legal advice. Confirm every rate, fee and rule with your lender, your accountant and the official source linked above. Everything runs in your browser; nothing you enter is sent anywhere.

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