Free Tool · For Commercial & Multifamily Buyers
Commercial Property Loan & DSCR Calculator
Estimate Debt Service Coverage Ratio — the metric commercial and multifamily lenders actually underwrite against, not cap rate or cash-on-cash return.
Run the Numbers
Loan-type presets below are general starting points, not quoted rates — every field is editable. Confirm real terms with a lender for your specific property and financing situation.
$150,000$500,000$2,000,000+
5%10% ($50,000)40%
6.5%
$10,000$50,000/yr$250,000+
1.00x1.25x1.50x
Your DSCR
—
Loan amount—
Monthly P&I—
Annual debt service—
Loan a lender might support at this NOI
—
Based on your NOI, rate, term, and DSCR threshold above.
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Questions About This Tool
What is DSCR, and why does it matter more than cap rate for commercial loans?
Debt Service Coverage Ratio is net operating income divided by annual debt service (loan payments) — it tells a lender how many times over the property's income covers the loan payment. Commercial and multifamily lenders underwrite against DSCR specifically, not cap rate or cash-on-cash return, because it directly answers their real question: can this property's own income service this loan?
What DSCR do lenders typically want to see?
It varies by lender and property type, but 1.25x is a commonly cited minimum target — meaning income covers the loan payment with 25% to spare. Some lenders accept lower for very stable properties or require higher for riskier ones. Adjust the threshold in this tool to match what your specific lender has quoted you.
Are the SBA 504, SBA 7(a), and conventional presets exact rates and terms?
No — they're general starting points based on how these loan programs typically compare to each other (SBA 504 generally allows a lower down payment and a blended lower effective rate; SBA 7(a) usually runs a bit higher; conventional commercial usually requires more down and can carry a shorter amortization). Every field is editable, and actual terms depend on your lender, the property, and current rates — confirm real numbers with a lender before relying on this.
What does the reverse calculation actually tell me?
Given your entered NOI and the lender's DSCR threshold, it estimates the largest loan amount that would still hit exactly that DSCR at your chosen rate and term — a rough answer to "how much could this property's income actually support?" A lender's real underwriting will factor in more than this alone.
Can Dave help with commercial or multifamily property specifically?
Yes — Dave works with commercial and investment property buyers and sellers, and can point you toward lenders experienced with SBA and conventional commercial financing for your specific property type.