Commercial loan calculator
See how much a commercial property can borrow, sized the way lenders do it: by income and by value.
Estimate only, not a quote, term sheet or commitment to lend. Business-purpose loans. Lenders set their own DSCR, LTV, rate and amortization by property type, market and borrower, and closing costs and reserves are not included.
Commercial lenders size a loan with two tests and lend the lower amount: debt service coverage (how much payment the property's net operating income can cover, often 1.20 to 1.35 times) and loan-to-value (often 65% to 80% of the price or value). This calculator runs both and shows which one limits your loan.
How to read the numbers
- Max by DSCR is the largest loan the property's net operating income can carry at your target coverage. NOI is rent and other income minus operating expenses, before the mortgage.
- Max by LTV is the loan-to-value cap on the purchase price or value.
- Debt yield is NOI divided by the loan. Many lenders want to see it around 8% to 10% or higher.
- Cap rate is NOI divided by the price or value.
Common questions
What is DSCR on a commercial loan?
DSCR, the debt service coverage ratio, is the property's net operating income divided by its annual loan payments. A 1.25 DSCR means the income covers the payments 1.25 times. Lenders use it to cap how large the loan can be.
What LTV can I get on a commercial property?
It depends on the property and the lender. Many conventional commercial loans land between 65% and 80% loan-to-value. SBA loans for owner-occupied property can go higher.
Do I need personal income to qualify?
Commercial lenders focus on the property's income and the sponsor's experience, credit and liquidity. Many investment property loans don't rely on personal income the way a home loan does.
Can you finance owner-occupied commercial property?
Yes. Owner-occupied properties can qualify for conventional commercial loans and SBA 7(a) or 504 financing, which often allow a smaller down payment.