Max Loan Amount Calculator
Estimate maximum commercial mortgage proceeds from NOI and lender constraints including debt yield, DSCR, and LTV.
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How it works
Follow the underwriting path lenders use: input the deal, apply constraints, then read the result.
Start with NOI
NOI sets the income base for debt yield and DSCR sizing.
Maximum Loan Amount Formula
The modeled loan ceiling is the lowest amount supported by debt yield, DSCR and LTV. Follow the worked example and download the reconciliation workbook to check the inputs.
Read the calculation methodology and limitations.
Max by Debt Yield = NOI / Minimum Debt Yield
Max by DSCR = (NOI / Minimum DSCR) / Loan Constant
Max by LTV = Value x Max LTV
Max Loan = MIN(all available tests)If debt yield supports $10M, DSCR supports $9M, and LTV supports $11M, the maximum loan is $9M and DSCR binds.
See This Calculator in Action
Explore institutional underwriting examples. Load any scenario into the live calculator with one click to customize rates, amortization, and property valuation.
NOI to max loan
NOI ÷ Minimum Debt Yield = Maximum LoanDebt-yield sizing is the fastest first-pass max-loan estimate when you only know NOI.
Underwriting Metric Comparison & Lender Sizing Standards
Compare debt yield against DSCR and LTV constraints, and review typical sizing assumptions across lender types.
Loan Sizing Constraints
3 Core Sizing TestsNOI / Minimum Debt YieldIncome cushion
(NOI / Minimum DSCR) / Loan ConstantPayment coverage
Value x Max LTVCollateral leverage
| Constraint | Formula | What It Protects |
|---|---|---|
| Debt Yield | NOI / Minimum Debt Yield | Income cushion |
| DSCR | (NOI / Minimum DSCR) / Loan Constant | Payment coverage |
| LTV | Value x Max LTV | Collateral leverage |
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Debt yield only | $800,000 NOI / 10% | $8,000,000 max loan |
| LTV check | $12,000,000 value x 75% | $9,000,000 max by LTV |
| Full sizing | Compare DSCR, LTV, and debt yield | Lowest supported amount controls |
Conversion reference
| Constraint | Required Inputs | Output |
|---|---|---|
| Debt Yield | NOI and min debt yield | Income-based loan cap |
| DSCR | NOI, rate, amortization, min DSCR | Payment-coverage loan cap |
| LTV | Value and max LTV | Collateral-based loan cap |
Quick facts
- Maximum loan amount is usually the smallest supported loan across lender tests.
- Debt-yield sizing can be calculated quickly from NOI alone.
- DSCR sizing needs rate and amortization assumptions.
- LTV sizing needs a lender-approved value basis.
Editorial Team
Commercial Real Estate Finance Reviewers
- Calculations reviewed against standard CRE lending formulas for DSCR, LTV, cap rate, and debt yield
- Methodology cross-checked against lender-style loan sizing using NOI, value, loan constant, DSCR, LTV, and debt yield
Our editorial team builds and reviews commercial real estate finance calculators around the way lenders actually size debt: property income, collateral value, annual debt service, and lender risk thresholds. Results are educational screening estimates, not loan quotes, tax advice, legal advice, or a commitment to lend.
Methodology: formulas are calculated from borrower-entered inputs using standard CRE underwriting relationships for NOI, debt yield, DSCR, LTV, cap rate, loan constant, and maximum loan proceeds.
Reviewer note: pages are reviewed for formula accuracy and updated when lender benchmarks or site methodology changes.
Disclaimer: results are educational estimates only and are not financial, legal, tax, valuation, or lending advice.
Frequently asked questions
They usually compare maximum loan by LTV, DSCR, and debt yield, then use the lowest supported amount as the proceeds cap.
For debt yield, divide NOI by the minimum debt yield. For DSCR, divide NOI by the minimum DSCR and then by the loan constant.
Use all available formulas. The binding constraint is whichever produces the lowest maximum loan amount.