🇺🇸 This calculator is for US residents. Foreign national investors →Investor Calculator

Commercial Property Calculator

NOI, Cap Rate, DSCR & Cash Flow — for US residents

This tool is for educational purposes only and does not constitute financial advice. Consult a licensed lender or financial advisor before making any financial decisions.

Property Type

Cap rate benchmark for Multifamily (5+ units): 4–6%

Income / Investment PropertyGenerates rental income. DSCR min 1.25. No FHA/VA/USDA.

Purchase Price

$200,000$20,000,000

Gross Annual Income

$10,000/yr$2,000,000/yr

Down Payment (%)

25%60%

Interest Rate (%)

5.000%15.000%

Amortization Term

Most commercial loans have a 5–10yr balloon payment regardless of amortization term.

DSCR0.541

Cap Rate4.46%

Monthly Cash Flow-$4,734/mo

Annual NOI$67K/yr

Cash-on-Cash Return-15.15%

Monthly Debt Service$10,314/mo

⚠️

DSCR 0.541 — below 1.25 commercial minimum

💵Min Annual Income to Qualify

$214K/yrCurrent: $120K/yr — gap: +$94K/yr

🏦Increase Down Payment

Try 35–40%Reduces debt service → improves DSCR

📉Reduce Expense Ratio

Try 35–37%Lower operating costs → higher NOI

📊Negotiate Lower Price

Reduce purchase priceSmaller loan → lower debt service → better DSCR

DSCR Analysis — Commercial

Below Min (1.25)

Gross Income/yr$120K

EGI/yr$112K

NOI/yr$67K

Debt Service/mo$10,314

0.01.25 (Min)1.35 (Best rates)2.0

Annual Income & Expense Breakdown

Potential Gross Income (PGI)+$120,000/yr

Vacancy Loss (7%)-$8,400/yr

Effective Gross Income (EGI)+$111,600/yr

Operating Expenses (40% of EGI)-$44,640/yr

Net Operating Income (NOI)+$66,960/yr

Annual Debt Service-$123,764/yr

Annual Cash Flow-$56,804/yr

Loan Amount

$1.13M

LTV

7500.0%

Gross Rent Multiplier

12.50

Down Payment ($)

$375K