Commercial mortgage calculator
How much an income property can borrow, based on what it earns.
The property
$
$
%
$
Property tax, insurance, utilities, repairs, management and reserves. Leave out the mortgage payment.
The mortgage
%
What the lender requires
%
Debt coverage is the property's net income divided by its mortgage payments. Most lenders want 1.20 to 1.30. Insured multi-family loans can go to 1.10 with higher loan-to-value and longer amortizations.
The two limits
A lender uses whichever is lower.What the income supports
What the value supports
Commercial lending is its own world.
Every lender measures income, expenses and coverage a little differently, and the right one can add hundreds of thousands to what a building can borrow. Bring us the rent roll and we'll run it properly.