Commercial Real Estate Loan Calculator — Know Your Numbers Before You Negotiate
See your LTV, DSCR, and monthly payment in minutes — the same numbers your lender will be running.
Commercial Real Estate Loan Calculator
Before you apply, it helps to understand the key numbers a lender uses to size up your deal. A commercial real estate loan calculator estimates your monthly payment, loan-to-value (LTV) ratio, and debt service coverage ratio (DSCR) — the same figures a lender will run when underwriting your loan.
The Three Numbers That Matter Most
Loan-to-Value (LTV): Your loan amount divided by the property's appraised value. Most commercial lenders cap LTV between 65-80%, depending on property type.
LTV = Loan Amount ÷ Property Value
For example, a $650,000 loan on a property valued at $1,000,000 gives you an LTV of 65%.
Debt Service Coverage Ratio (DSCR): The property's net operating income divided by its total annual debt payments. Most commercial lenders want to see a DSCR of at least 1.20-1.25.
DSCR = Net Operating Income ÷ Annual Debt Service
For example, a property generating $150,000 in net operating income with $120,000 in annual debt payments has a DSCR of 1.25 — meaning it generates 25% more income than needed to cover the loan.
Monthly Payment: Commercial loans are typically amortized over 20-25 years but carry a shorter loan term (often 5-10 years) with a balloon payment due at the end. Your monthly payment is calculated on the full amortization schedule, even though the loan itself comes due sooner.
What You'll Need to Estimate Your Numbers
- Purchase price or current property value
- Estimated or actual net operating income
- Your expected down payment
- Target interest rate and amortization period
Get an Accurate Estimate
Because commercial loan terms vary significantly by property type, lender, and market, a generic calculator only gets you so far. Contact us for a personalized estimate based on your actual property and deal.
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