Calculate monthly payment, balloon, and DSCR — or switch to Full Underwriting Mode for line-item P&L analysis with stress testing and a printable deal summary.
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Commercial loans amortize over 20–30 years but are due in 5–10 years. The unpaid balance at term end is the balloon payment.
Commercial loans almost never run their full amortization. A 25-year amortization with a 5-year balloon means you owe the remaining ~85% of the loan in one lump sum after 5 years.
Commercial lenders typically require 20–35% down. SBA 504 owner-occupant loans can go as low as 10%. Investment property loans usually require 25–30%.
Most lenders require a DSCR of 1.20–1.30x minimum — meaning property NOI must be at least 1.20–1.30 times annual debt payment.
Lenders don't accept seller's NOI at face value. They apply vacancy floors, management fees, and replacement reserves — typically reducing NOI by 5–15%.
Lenders also check the borrower: net worth equal to loan amount, 9–12 months of debt service in liquidity, real estate experience, credit score 680+.
Many commercial loans require a personal guarantee. Non-recourse loans typically need larger deals, stronger sponsors, and lower leverage.
A calculator gives you the math. A broker gives you the deal. Whether you're shopping for property, evaluating a deal, or refinancing, Jason can connect you with the right lenders and identify properties that meet your numbers.
Submit acquisition criteria and get matched with on-market and off-market opportunities in Chicagoland.
Submit Criteria →Whether your balloon is coming due or you're considering a sale, get a free Broker Opinion of Value with comps and pricing strategy.
Request BOV →Lenders apply standard adjustments: a vacancy floor (5% minimum even if 100% leased, 10% for office), a management fee (3–5% even if you self-manage), and replacement reserves ($0.20–$0.30/SF annually). The result: lender NOI is usually 5–15% lower than seller NOI — and that's what your loan gets sized against.
No — DSCR thresholds vary dramatically. Life insurance companies want 1.30–1.45x. Bank portfolio loans typically require 1.20–1.30x. CMBS runs 1.20–1.25x. SBA 504 and 7(a) can go as low as 1.15x for owner-occupants. Bridge lenders may not require a DSCR at all. This calculator's lender match feature shows which loan types your specific deal qualifies for.
A balloon is the lump sum owed at the end of a commercial loan term. Lenders amortize over 25 years (manageable monthly payment) but only commit to the rate for 5–10 years. At term end, you must refinance, sell, or pay cash.
Standard DSCR uses today's NOI and today's debt payment. Stress-tested DSCR shows what happens if conditions get worse: rates +1%, vacancy +5%, or rents −5%. If your stress-tested DSCR falls below 1.0x in any scenario, the deal has real risk — even if today's number looks fine.
Yes — Full Underwriting Mode is built for that. Use it for properties you're considering, properties on the open market, or properties you're listing. The printable summary includes all inputs, the underwriting analysis, lender match, and contact info. Just remember it's still an underwriting tool — actual loan terms require real quotes from real lenders.