Borrowing Capacity Calculator

Incremental borrowing depends on LTV, DSCR, and debt yield simultaneously. This calculator finds the binding cap.

Property value

Current loan

NOI

Max LTV %

Min DSCR

Target debt yield %

Additional capacity

$3,000,000

Binding constraint

LTV

Max total loan

$21,000,000

How the math works

Capacity = min(LTV × value, NOI ÷ debt yield, DSCR-implied) − current loan.

Know which constraint binds. LTV bind = market value story, push appraisals. DY or DSCR bind = NOI story, push rents. Each tells you what to work on before asking for more capacity.

How to Use

Enter property value.
Enter current loan balance.
Enter NOI.
Enter max LTV, min DSCR, target debt yield.
Read additional capacity.

Frequently Asked Questions

Multiple caps?

Lenders test LTV, DSCR, and debt yield simultaneously. Borrowing capacity = most restrictive of the three. Modeling only one metric can miss the binding cap.

Capacity use?

Growth acquisitions, deferred capex, sponsor distributions, refinance buyout of partner. Plan use before borrowing; lender scrutiny of use-of-funds affects pricing.

Stress test?

Run capacity with 10% lower value and 10% lower NOI. A capacity that disappears under stress isn't safely accessible — leave it for crisis only.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.