RealAsset Edge - CRE Loan Sizing Calculator

Determine maximum loan amounts using LTV, Debt Yield, and DSCR constraints

Loan Inputs

$

$500,000

$

$5,000,000

%

65.00%

%

5.50%

1.25x

%

5.50%

years

25 years

years

10 years

Calculation Methods

Max Loan by LTV

Max Loan Amount

$3,250,000

Formula

Property Value × (Max LTV / 100)

Variables Used

Property Value$5,000,000
Max LTV65.00%

Max Loan by Debt Yield

Max Loan Amount

$9,090,909

Formula

NOI / (Min Debt Yield / 100)

Variables Used

NOI$500,000
Min Debt Yield5.50%

Max Loan by DSCR

Max Loan Amount

$5,428,108

Formula

Calculated from NOI / Min DSCR

Variables Used

NOI$500,000
Min DSCR1.25x
Interest Rate5.50%
Amortization Period25 years

Constrained Loan Amount (Minimum of 3 Methods)

$3,250,000

Binding Constraint:

LTV

Custom Loan Override

Constrained Amount

$3,250,000

Output Metrics

Selected Loan Amount

$3,250,000

Final loan amount used for analysis

Calculated LTV

65.00%

Loan to Value ratio

Debt Yield

15.38%

NOI as % of loan amount

Annual Debt Service

$239,494

Total annual loan payments

DSCR

2.09

x

Debt Service Coverage Ratio

Equity Required

$1,750,000

Property value minus loan amount

Cash on Cash Yield

14.89%

Annual cash flow as % of equity

MetricValueDescription
Selected Loan Amount$3,250,000The loan amount used for all calculations
Calculated LTV65.00%Selected loan amount divided by property value
Debt Yield15.38%Underwritten NOI divided by loan amount
Annual Debt Service$239,494Total principal and interest paid annually
DSCR2.09xNOI divided by annual debt service
Equity Required$1,750,000Property value minus selected loan amount
Cash on Cash Yield14.89%Annual cash flow (NOI - ADS) divided by equity
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