Commercial Mortgage Calculator
Estimate your commercial mortgage payment and debt service coverage ratio (DSCR) — the number lenders care about most.
Type exact values (cents included) or drag a slider to get close. To fine-tune, click the slider and press Left arrow keyRight arrow key on your keyboard: each press moves mortgage amounts by $100 and interest rates by 0.01%.
Type an exact value from $250,000 to $10,000,000. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of $100.
Type an exact value from 4.00% to 10.00%. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of 0.01%.
Type an exact value from $50,000 to $1,000,000. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of $100.
Commercial deals are underwritten on the property's income. DSCR of 1.25x+ opens the most options — complex files welcome.
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Get Exact Numbers — Free CallHow the Commercial Mortgage Calculator Works
Commercial mortgages — for multi-family, retail, office and industrial properties — are underwritten differently from residential ones. The property’s own income has to support the debt, measured by the Debt Service Coverage Ratio (DSCR).
This calculator estimates your monthly payment and DSCR from your loan amount, rate, amortization and the property’s net operating income.
4 Steps to Your Results
Commercial rates and terms vary more than residential — use your quoted or estimated figures.
Commercial amortizations commonly run 15, 20 or 25 years, often shorter than residential.
Annual income after operating expenses, before debt service — the figure lenders use to size the loan.
Annual debt service and the resulting DSCR, with a clear flag against the common 1.25x minimum most lenders require.
A $1,500,000 loan at 6.25% over 25 years produces a monthly payment of about $9,821, or $117,853 in annual debt service.
Against $180,000 in annual net operating income, that’s a DSCR of about 1.53x — comfortably above the 1.25x minimum most lenders require, which typically opens up more competitive rate and term options.
A property with the same loan but lower NOI could fall below that 1.25x threshold, which is where alternative financing or a smaller loan amount usually comes into the conversation.
Frequently Asked Questions
Debt Service Coverage Ratio is a property’s net operating income divided by its annual debt service. Most lenders want at least 1.25x, meaning the property generates 25% more income than needed to cover the loan payment.
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