Calculate your commercial mortgage payment and debt service coverage ratio (DSCR) — the number lenders care about most.
Estimates only. Assumes a fixed-rate, fully amortizing loan. Actual terms, fees, and reserve requirements vary by lender.
This tool does two things at once: it calculates your monthly mortgage payment on an amortizing commercial loan, and — if you enter NOI — your debt service coverage ratio (DSCR), the single most important number to a commercial lender.
Enter the loan amount, interest rate, and amortization term to see the monthly payment and annual debt service. Add the property's NOI to compute DSCR. A DSCR of 1.25x means the property generates 25% more income than it needs to cover its debt.
Most commercial lenders require a minimum DSCR of roughly 1.20x to 1.25x on stabilized income-producing real estate, though it varies by lender, asset, and market. The higher your DSCR, the more cushion — and the easier the financing.
Debt service coverage ratio is net operating income divided by annual debt service. It measures how comfortably a property's income covers its loan payments.
The payment math is the same amortization formula, but commercial loans add DSCR, often shorter terms, and balloon structures — which is why DSCR is included here.