Methodology
Our calculators are educational screening tools for commercial real estate finance. Each formula is built from standard underwriting relationships and reviewed for clarity, consistency, and practical limits.
Formula Review
We calculate debt yield, DSCR, LTV, cap rate, NOI, loan constant, payment, and maximum loan amount using transparent formulas shown on each calculator page. Inputs are validated for common data-entry errors before results are displayed.
Underwriting Assumptions
- NOI is annual property income after operating expenses and before debt service.
- DSCR uses annual debt service derived from rate and amortization.
- LTV uses the value basis entered by the user, such as purchase price or appraisal.
- Debt yield divides annual NOI by loan amount and does not use rate or amortization.
- Maximum loan amount is the lowest available result across the relevant lender tests.
Sources and Limits
Benchmarks are presented as screening ranges because lender requirements vary by lender, property type, market, sponsorship, loan structure, and capital markets conditions. Results are not loan quotes, appraisals, tax advice, legal advice, or commitments to lend.