Investor Tools

Commercial Loan Calculator

Run a quick pro forma on any commercial deal. See your payment, DSCR, debt yield, cash-on-cash and how much a lender is likely to lend, before you make an offer.

How lenders size a commercial loan

Commercial lenders don't just look at your down payment. They size the loan off the property's income, then cap it at a loan-to-value. Whichever test gives the smaller loan wins.

The numbers that matter

DSCR (debt service coverage ratio): net operating income divided by annual loan payments. Most Idaho lenders want 1.20x to 1.35x.

Debt yield: NOI divided by the loan amount. Lenders use it as a quick check on risk, often looking for 8% to 10% or more.

Cap rate vs. interest rate: when the cap rate is below your rate, debt lowers your cash-on-cash return. That's called negative leverage.

Balloon balance: most commercial loans amortize over 20 to 25 years but come due in 5 to 10. This is what you'll owe when the term ends.