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Loan sizing
How large a loan does this property actually support — and which test is stopping it?
Runs the loan-to-value, coverage and debt-yield tests side by side and names the one that binds. Every other calculator on this site is downstream of this answer.
Every default here is an illustrative figure chosen to be plausible. Nothing on this page is a rate sheet, a quote or an offer, and no licence or NMLS number exists to attach to it.
Indicative loan——
Equity required—Value less the loan
Monthly payment——
Annual debt service—Twelve payments
The three tests
IllustrativeEach bar is the largest loan that test allows. The shortest bar is the loan.
Where the binding test changes hands
Maximum proceeds across a range of interest rates, holding your floors constant. The line steps where one constraint takes over from another — which is the moment a lower rate stops helping you.
Loan-to-value binds Coverage binds Debt yield bindsYour rate marked with a dashed rule
Resulting ratios
Loan-to-value——
Debt service coverage——
Debt yield——
Implied cap rate—NOI over value
What would move this number
—
Assumptions on this page
- Coverage is tested on the amortising constant unless an interest-only period is set, which is how most lenders size a loan that later pays interest-only.
- Net operating income is taken as already net of reserves, a management fee and economic vacancy. If yours is not, this will oversize the loan.
- Loan-to-value uses the figure you enter as the lesser of price and appraised value.
- No origination fee, no reserve funding and no prorations are deducted from proceeds.
- Every default above is an illustrative figure, not a rate sheet.
Other calculators
- CoverageDSCR & debt yieldDoes the income cover the debt, and by how much?
- ScheduleAmortisation & balloonWhat is the payment, and what is still owed on the maturity date?
- ValuationCap rate & valueWhat is this income worth, and what does the price imply?
- TransitionalBridge to permanentDoes the exit retire the bridge?