Debt Sizing Calculator
How much can the property borrow?
Lenders size loans to the most restrictive of three tests. Enter the income and value, and see which one sets the limit.
Inputs
0 for interest only
0 to ignore
Results
Indicative maximum loan
$12,025,000
Binding constraint: LTV
Monthly payment
$77,994
Annual debt service
$935,927
Resulting DSCR
1.34x
Resulting LTV
65.0%
Resulting debt yield
10.40%
| Constraint | Max loan |
|---|---|
| DSCR | $12,848,224 |
| LTV (binds) | $12,025,000 |
| Debt yield | $15,625,000 |
Assumptions
- Debt service is calculated on a fully amortizing loan at the rate and amortization entered, or interest only when amortization is 0.
- NOI should be stabilized and lender underwritten: actual trailing income less vacancy, a market management fee, reserves, and taxes and insurance at what a new owner will pay.
- Lenders size to the most restrictive of DSCR, LTV, and debt yield. Some lenders do not use debt yield.
- Closing costs, origination fees, reserves, and rate buydowns are not included.
Results are educational estimates based on the inputs and assumptions shown. They are not a commitment to lend, an offer of financing, or an offer to sell or a solicitation of an offer to buy any security. Actual terms depend on lender underwriting and approval.