Commercial Loan Size Calculator

Commercial real estate lenders no longer rely on just the Loan-to-Value Ratio and the Debt Service Coverage Ratio to compute their maximum loan amount.  Instead, the new Debt Yield Ratio is often the limiting factor to how much money you can borrow.

For example, you might be able to qualify for a $5 million new commercial loan based solely on the Loan-to-Value Ratio.  The Debt Service Coverage Ratio might slightly cut that loan back to just $4.85 million.

What might really kill you, however, is the Debt Yield Ratio.  The Debt Yield Ratio may cut your loan all the way back to just $4.3 million.  Yikes!

This free calculator will help you:

  • Use Loan to Value, Debt Service Coverage Ratio and Debt Yield Ratio to determine your max loan size
  • Help you identify the limiting ratio in your loan scenario
  • Help you battle intelligently for a larger loan amount