Commercial Real Estate Loan Calculator

One acquisition and debt scenario in a single model

The calculator begins with purchase price and acquisition equity, then applies a fixed-rate, fully amortizing payment schedule. That makes the financing amount, upfront cash, property income, and debt metrics traceable to the same assumptions instead of requiring separate calculations with potentially inconsistent balances.

EstateCalc does not select a market rate or lender threshold. Enter a documented term sheet or clearly labeled assumptions. The displayed LTV, DSCR, and debt yield are mathematical outputs for that scenario, not an approval decision or a characterization of the financing.

Derived principal and the loan amount override

With override set to 0, principal is purchase price minus down payment. With override set to 1, the explicit override becomes principal and acquisition equity is recalculated as purchase price minus that loan. This prevents the down payment and overridden debt from being counted together as though both controlled the capital stack.

The override cannot exceed the purchase price in this acquisition model. Cash required adds the resulting acquisition equity, the percentage origination fee on the used loan, and entered closing costs. It does not imply that every lender-funded or escrowed item has been captured.

P&I, amortization, balloon, and total interest

The standard payment formula converts the nominal annual rate to a monthly rate and produces level monthly principal and interest over the amortization period. The balloon term is a separate maturity clock. If it arrives before full amortization, unpaid principal appears as the balloon balance; if it extends beyond amortization, scheduled payments stop once principal reaches zero.

First-year scheduled debt service contains no more than 12 regular P&I payments and excludes the balloon. Total debt payments include scheduled installments through maturity plus the balloon payoff. Total interest is that payoff-inclusive total minus original principal. Origination and closing costs remain acquisition cash items, not interest.

How LTV, DSCR, and debt yield use the inputs

LTV divides the used loan amount by purchase price. DSCR divides annual NOI by first-year scheduled debt service, while debt yield divides the same annual NOI by principal. DSCR therefore changes with payment structure; debt yield does not use rate or amortization. A zero denominator produces no ratio rather than an invented value.

Use NOI from the same property, period, and operating definition in every comparison. This calculator accepts the finished annual number and does not reconstruct rent, vacancy, reimbursements, operating expenses, or reserves. The related NOI and commercial investment pages provide a more detailed property-side model.

Cash required and model boundaries

Cash required is a transparent sources-and-uses subtotal: purchase price less the used loan, plus origination fee and closing costs. It includes the entered down payment exactly in derived mode and recomputes equity from the override in override mode. It is not a complete closing statement because reserves, prorations, escrows, credits, and unentered fees can change funding.

The debt schedule assumes one fixed-rate amortizing layer with regular monthly payments. Interest-only periods, floating rates, construction draws, subordinate debt, refinance proceeds, prepayment charges, daily-interest conventions, and lender covenants are outside the model. Confirm contractual figures against lender documents before closing or payoff.

Commercial Real Estate Loan Calculator FAQ