BOLLARDCommercial Capital

02Calculator

DSCR, debt yield and loan sizing

Three tests are run independently and the smallest answer wins. This one shows all three, names the one that bound, and tells you the gap to the next — which is the only part you can negotiate.

  • Underwritten NOI
  • Three sizing tests
  • The binding constraint, named
  • Cap rate, DSCR and debt yield

Illustrative only. Bollard is a fictional business built as a website demonstration — the figures below are worked examples, not an offer, a quote or a rate sheet.

Your figures

Income

Expenses

Value and terms

Lender floors

Maximum loan

$1,015,000

Bound by LTV

  • Loan to value—
  • Debt service coverage—
  • Debt yield—

Underwritten NOI

—

after vacancy, expenses and reserves

DSCR at that loan

—

income ÷ debt service

Debt yield

—

income ÷ loan

Cap rate

—

income ÷ value

Net operating income, line by line

What a lender actually underwrites

LineAnnualPer sq ft

Sensitivity

Where the binding constraint changes hands

Rate moved ±150 basis points, everything else held

RateBy LTVBy DSCRBy debt yieldMaximumBound by

Send this result

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Nothing is actually sent from this demonstration. The button beside it opens your own mail client with the link, which is the honest version.

Assumptions and limits

What this model does and does not do

Net operating income is built the way an underwriter builds it: gross potential rent less vacancy, less operating expenses, less a replacement reserve applied whether or not the seller budgets one. Debt service is excluded from expenses by definition.

Coverage is tested at the rate you enter. Many lenders test at a stressed rate above the note rate, which sizes the loan smaller — raise the rate slider to see what that does.

Loan sizing assumes a constant payment on a fixed rate over the amortisation you choose. Interest-only periods, earn-outs, holdbacks and mezzanine pieces are outside this model.

The figures are yours; the floors are yours. Nothing here reflects any lender's actual credit policy.

Deal intake

Have someone check your numbers

Send the scenario and a real desk would come back with the two or three structures worth pricing.

This is a demonstration site. Forms validate and confirm on screen; nothing is transmitted, emailed or stored.

The other five

01504 stackWhat does a three-part capital stack actually cost me each month?03AmortisationWhat is left on the day this loan matures?04Lease vs ownIs buying the building better than renewing the lease?05Carry costWhat does short-term money cost me before the take-out?06RefinanceDoes this refinance pay back before I sell or mature?

Next bay

Model it, then let someone check it

Calculators answer the arithmetic. What they cannot tell you is whether a lender will believe your net operating income, or which programme your equity actually supports.

Submit a deal scenario Work the numbers first

Or call the desk

(816) 555-0142

Monday to Friday, 8am – 6pm Central

A demonstration number in the range reserved for fiction. It does not ring anywhere.