Commercial Value-Add & Debt Calculator
Connect stabilized NOI, value, project cost and refinance constraints. Then see how a weaker income case and higher exit cap change the plan.
Separate residential rental ratio
Use only the actual lender’s eligible monthly rent and defined monthly housing obligation. This is not commercial NOI coverage and does not determine eligibility.
Commercial methodology
Effective gross income = potential rent × (1 − vacancy) + other income. NOI = effective gross income − entered recurring operating expenses. Income value = positive NOI / assumed cap rate. Yield on cost = NOI / total project cost. These definitions are shown so you can reconcile lender-specific adjustments.
For monthly amortization, payment = principal × m / [1 − (1+m)−n], where m is nominal annual rate / 12 and n is amortization months; at zero rate, payment = principal / n. Annual debt constant = 12 monthly payments per dollar of principal. DSCR loan cap = positive NOI / required DSCR / annual debt constant. IO uses annual nominal interest as its debt constant and retains principal at maturity.
The lowest enabled DSCR, LTV and LTC cap binds. This simplified output is before unentered lender conditions and is not a commitment. Refinance cash = modeled loan − old payoff − costs/holdbacks; negative means more equity required. Balloon is the unpaid modeled principal at entered maturity.
Checked example
$240,000 NOI at an assumed 6% cap gives $4 million modeled value. At 1.25 required DSCR, 7.5% nominal interest and 300-month amortization, the DSCR loan cap is approximately $2,165,113.80. It binds ahead of 65% LTV and 75% LTC on $3 million eligible cost. Against $2.4 million debt and $40,000 refinancing costs, additional equity required is $274,886.20.
Zero/negative NOI does not support a positive income-value or DSCR loan result here. It can indicate a business plan that needs different evidence or a different capital/exit strategy.