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Estimate the payment, loan-to-value, and debt service coverage ratio (DSCR) on a commercial or investment-property loan from the property's net operating income.

Quick answer: Commercial and investment-property lenders qualify a loan mainly on the property's income, not the borrower's personal income — the key number is DSCR, net operating income divided by annual debt service. This calculator estimates the payment, loan-to-value, DSCR, and the maximum loan the property's income could support at a common 1.25x DSCR minimum.

SWReviewed by SwitchWize Research Desk · Last reviewed August 25, 2026
Monthly Payment
$5,421
Monthly Payment
$5,421
Monthly Rate
0
Annual Debt Service
$65,053
Loan-to-Value
75.00%
Annual Cash Flow After Debt Service
$24,947
Max Loan at 1.25x DSCR
$830,097
Diagnostic

On a $750,000 loan at 7.25% amortized over 25 years, the payment is $5,421/mo ($65,053/yr) — a 75.00% loan-to-value. Against $90,000 in annual NOI, that's a 138.35% DSCR.

At a common 125.00% (1.25x) DSCR minimum, this property's income could support up to $830,097 in financing at this rate and term. Actual thresholds and NOI treatment vary by lender.

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What to do next

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Your action plan
  1. 1

    Calculate the baseline result with your current numbers

    Estimate the payment, loan-to-value, and debt service coverage ratio on a commercial or investment-property loan from the property's net operating income.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

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Frequently Asked Questions

Everything you need to know.

What DSCR do I need to qualify for a commercial loan?
Most commercial and DSCR-loan lenders require a minimum of 1.20x-1.30x (120%-130%) — meaning the property's net operating income must exceed its annual debt service by that margin. Requirements vary by lender, loan type (bank, agency, CMBS, bridge), and property type; some programs go as low as 1.00x-1.10x for strong borrowers, others require 1.35x+ for riskier property types.
How is commercial mortgage NOI different from personal income?
Net operating income (NOI) is the property's own income minus its operating expenses (property tax, insurance, maintenance, management) — it excludes the mortgage payment itself and the borrower's personal income entirely. This is why commercial and DSCR-loan qualification can work for real estate investors whose personal income wouldn't otherwise qualify them for a large loan.
What loan-to-value (LTV) is typical for commercial mortgages?
Commercial LTVs are generally lower than residential — commonly 65%-80% depending on property type, with owner-occupied commercial real estate sometimes reaching 80-90% (SBA 504/7(a) programs) and riskier property types capped lower. A higher down payment (lower LTV) generally improves your rate and approval odds.
Are commercial mortgage rates higher than residential?
Typically yes — commercial and investment-property rates commonly run 0.5-2+ percentage points above comparable residential rates, reflecting the higher risk lenders assign to income-property and business-purpose loans. Rates vary widely by lender relationship, property type, and loan structure, so shop multiple lenders before committing.
Is the Commercial Mortgage Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Commercial Mortgage Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare investment property loans ->, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Commercial and investment-property lenders qualify a loan primarily on the property's income, not the borrower's personal income — the key number is DSCR (Debt Service Coverage Ratio): net operating income divided by the annual debt service. Most lenders want at least 1.20x-1.30x coverage. This calculator also estimates the maximum loan a property's income could support at a common 1.25x DSCR minimum.

How to Use It

  1. 1Enter the loan amount, property value, and interest rate
  2. 2Choose the amortization period
  3. 3Enter the property's annual net operating income (NOI) — rental income minus operating expenses, excluding debt service
  4. 4See the payment, loan-to-value, DSCR, and the maximum loan this NOI could support at a 1.25x DSCR minimum
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