Calculator
Loan Sizing & DSCR
Find the maximum loan a property can support given DSCR and LTV constraints. Stress-test at multiple lender scenarios simultaneously.
Property & income
Loan terms
Lender constraints
Typical: 1.20× (aggressive) to 1.35× (conservative)
Typical: 55–75% for commercial properties
Maximum loan amount
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Deal metrics
DSCR scenarios — NOI & rate held constant
| Min DSCR | Max loan (DSCR) | Max loan (LTV) | Binding | Equity req. |
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Frequently Asked Questions
What DSCR do commercial lenders require in Washington State?
Most conventional commercial lenders require a minimum DSCR of 1.20x to 1.30x. CMBS and life insurance company lenders typically require 1.25x stressed. Bridge lenders may go as low as 1.0x for transitional properties. The DSCR is calculated as NOI divided by annual debt service — a 1.25x DSCR means the property generates 25% more income than required to cover its loan payments.
What is the maximum LTV for commercial real estate loans in Washington?
Typical maximum LTVs: conventional bank loans 65–75%; CMBS/conduit 60–70%; life insurance company 55–65%; agency (multifamily) 65–80%; bridge/debt fund 70–80%. SBA 504 loans for owner-occupied commercial property can reach 90% combined LTV. The binding constraint is usually whichever of DSCR or LTV produces the lower loan amount.
How is DSCR calculated for commercial real estate?
DSCR = Net Operating Income ÷ Annual Debt Service. For example: $400,000 NOI ÷ $320,000 annual debt service = 1.25x DSCR. Lenders often stress-test by using a rate higher than the note rate (typically 6.5–7.0% minimum) to ensure the property can handle future rate increases.
What is the difference between LTV and DSCR in loan sizing?
Both are lender underwriting constraints, but they measure different things. LTV (Loan-to-Value) limits the loan as a percentage of appraised value regardless of income. DSCR limits the loan based on the property's ability to service debt from operating income. On well-located, low-cap-rate properties, DSCR is often the binding constraint. On higher-cap-rate or value-add properties, LTV often limits first.
Loan sizing depends on lender underwriting standards, property type, lease term, occupancy, and borrower creditworthiness. This tool provides a first-pass estimate only. Work with a commercial mortgage broker or lender for term sheet guidance.