GoFlexi LogoGoFlexi

Loan Sizing Calculator

Most commercial and multifamily lenders don't size a loan one way — they run several tests at once and lend the smallest result. This calculator does the same, so you can find your ceiling and see which test sets it. Enter the property's net operating income, value, interest rate, and amortization, set the minimums your lender uses (clear any test they don't apply), and it returns the largest loan each test allows, the binding constraint that caps your loan, and the down payment you'd need to cover the rest.

Rent after vacancy and operating expenses, before debt. Build it with the Cap Rate calculator.

Results
Maximum Loan Amount
$500,000
Capped by the Debt yield 10.0% test — the binding constraint.
DSCR 1.25x
$501,025
LTV 75%
$525,000
Debt yield 10.0%Binding
$500,000
Down payment / equity needed
$200,000
Resulting LTV
71.43%

The same deal, every year of the hold

Every figure on this page is year one, computed once on numbers that never move. GoFlexi's underwriting model runs the same property across the whole hold — rent growth, vacancy, capex, a refinance, and the exit — and reports what the deal actually returned.

Year-by-year projection
EGI, NOI, debt service, capex, cash flow to equity, DSCR and loan balance, every year
IRR and equity multiple
What the deal returns over the hold, levered — not what it yields in month one
Coverage and risk
Break-even occupancy, min and average DSCR, debt yield, yield on cost, expense ratio
Best year to sell
The return at every exit year, and how much of it hangs on the exit cap rate
Refinance / BRRRR
Cash out, cash left in, cash-on-cash on what stays in, and the largest loan the deal supports
Where the profit comes from
Cash flow, principal paydown and appreciation, net of selling costs

Free with an account

Seller-finance calculator
Price the same property bought on terms
Instant Mode
Turn a deal that passes into an offer
Save and compare deals
Keep what you structure, two side by side

About This Loan Sizing Calculator

When you ask a lender 'how much can I borrow against this property,' the answer is rarely a single calculation. Most commercial and multifamily lenders size a loan against several constraints at once and then lend the smallest amount any of them allows. The three most common are the debt service coverage ratio (the loan must leave enough net income to cover the payment with a cushion), loan-to-value (the loan can't exceed a set percentage of the property's value), and debt yield (the net income must be a minimum percentage of the loan amount). Not every lender applies all three — many residential DSCR lenders skip the debt-yield test, and some programs add their own caps — so clear any test your lender doesn't use, and the calculator sizes against the rest and shows you which one is binding.

The DSCR test works backward from income: it takes your net operating income, divides by the minimum DSCR to get the maximum annual debt service the lender will allow, and then converts that payment into the largest loan it supports at your interest rate and amortization period. The LTV test is simpler — it's just the property's value times the maximum loan-to-value. The debt-yield test divides net operating income by the minimum debt yield, a measure many lenders adopted after 2008 because, unlike DSCR and LTV, it doesn't move with interest rates or appraised value. Your maximum loan is the lowest of the three.

Knowing the binding constraint is what makes this actionable. If DSCR is capping your loan, a lower rate, longer amortization, or an interest-only period raises the ceiling. If LTV is binding, you need a higher value or more down payment — better terms won't help. If debt yield is binding, only more net income or a lower loan moves it. The calculator labels the constraint so you know which lever to pull. When you're ready to model the resulting loan in full, or structure a seller second to bridge the gap between the maximum loan and the price, the GoFlexi calculator picks up where this leaves off.

Related calculators

DSCR Calculator

Check a rental's debt service coverage ratio against a lender's minimum, with both DSCR-loan (rent ÷ PITIA) and commercial (NOI) methods.

Capital Stack Builder

Layer senior debt, mezzanine, seller carry, preferred and common equity into a capital stack, and see each tranche's share, your LTV and LTC, and the blended cost of capital.

Cap Rate Calculator

Get a property's NOI and capitalization rate from price and rent, then check it against a target cap rate to see the value the income supports.

Frequently Asked Questions

How do lenders decide the maximum loan amount?

Commercial and rental lenders run several sizing tests and lend the smallest result. The three most common are debt service coverage ratio (DSCR), loan-to-value (LTV), and debt yield. Each produces a maximum loan, and the lowest of the three — the binding constraint — sets the actual loan amount. This calculator runs all three at once and tells you which one is holding the loan back.

How is the DSCR-constrained loan amount calculated?

Start with net operating income and divide by the lender's minimum DSCR to find the largest annual debt service allowed — that's the most the property's income can support while keeping the required cushion. Divide by 12 for a monthly payment, then convert that payment into a loan balance using the interest rate and amortization term. A lower rate, longer amortization, or interest-only period each raise the loan the same income can support.

What is debt yield and why do lenders use it?

Debt yield is net operating income divided by the loan amount, shown as a percentage — the return the lender would earn if it had to foreclose and own the property at the loan basis. Lenders adopted it widely after 2008 because, unlike DSCR and LTV, it doesn't get distorted by low interest rates or inflated appraisals. A common minimum is around 8–10%. To size from it, divide NOI by the minimum debt yield: a property with $50,000 NOI at a 10% minimum supports a $500,000 loan.

What is the difference between DSCR, LTV, and debt yield?

All three cap the loan, but from different angles. DSCR limits the loan by the property's ability to cover the payment, so it moves with interest rates and amortization. LTV limits the loan to a share of appraised value, so it moves with the property's price. Debt yield limits the loan to a multiple of net income and ignores both rates and value, which is why lenders treat it as a rate-proof backstop. A deal can pass two and fail the third.

Which constraint is usually binding?

It depends on the rate environment and the deal. When interest rates are high, the DSCR test usually binds first, because the payment eats up the income cushion before LTV or debt yield is reached — this is why loan amounts shrank as rates rose. When rates are low and prices are high, LTV or debt yield tends to bind instead. The calculator labels the binding test for your specific inputs so you know which lever actually moves your maximum loan.

How can I increase my maximum loan amount?

It depends on which test is binding. If DSCR is the constraint, lower the rate (including a buydown), extend amortization, or use an interest-only period — all raise the loan the same income supports. If LTV is binding, you need a higher appraised value or simply more down payment; better loan terms won't help. If debt yield is binding, only higher net operating income or a smaller loan moves it. Raising NOI helps all three at once.

Does this work for residential DSCR loans too?

Yes, with a caveat about how NOI is measured. Commercial and multifamily lenders size against true net operating income (rent after vacancy and operating expenses), which is what this calculator uses. Many residential non-QM DSCR lenders instead use gross rent over PITIA and may not apply a debt-yield test at all. If you're sizing a residential DSCR loan, use the DSCR Calculator's residential method for the ratio itself, and treat the LTV result here as the more relevant constraint.

What down payment will I need?

Your down payment is the gap between the purchase price and the maximum loan the property supports. If a property is priced at $625,000 and the binding constraint caps the loan at $500,000, you'd need $125,000 down plus closing costs. The calculator shows this gap so you can see the equity required.

Need More Powerful Calculations?

Unlock wrap mortgages, balloon payment scheduling, amortization tables, tax benefit estimates, and more with GoFlexi's full-featured seller finance calculator.

Free plan — no credit card
14-day Pro trial for new accounts
Unlimited calculations
Cancel anytime