CRE Loan Sizing Calculator
Find the maximum loan amount under lender constraints
Commercial real estate lenders rarely size a loan from one ratio alone. They test debt service coverage, loan-to-value, and debt yield, then lend against the most restrictive result. This calculator shows which constraint limits proceeds and what the resulting payment, DSCR, LTV, and debt yield look like.
- ✓Sizes max loan by DSCR, LTV, and debt yield
- ✓Highlights the binding underwriting constraint
- ✓Calculates resulting payment, annual debt service, DSCR, LTV, and debt yield
- ✓Useful for acquisitions, refinances, and cash-out proceeds checks
| Constraint | Max Loan | Method |
|---|---|---|
| DSCR | $2,305,826 | NOI / 1.25x coverage |
| LTVBinding | $2,100,000 | 70% of property value |
| Debt Yield | $2,500,000 | NOI / 10.0% minimum yield |
Frequently Asked Questions
What is the binding constraint in CRE loan sizing?
The binding constraint is the underwriting test that produces the lowest maximum loan amount. A deal may pass LTV but fail DSCR, or pass DSCR but be limited by debt yield.
How do lenders size a loan by DSCR?
They divide net operating income by the required DSCR to get maximum annual debt service, then convert that payment into a loan amount using the rate and amortization.
What is debt yield?
Debt yield is NOI divided by loan amount. It tells the lender the unlevered cash yield on its loan basis and is commonly used alongside DSCR and LTV.
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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.