Capital Stack Calculator

Size each layer of the capital stack and see concentration, LTC, and blended yield. This is the go-to underwriting view for sources and uses.

Total project cost

Senior loan

Mezzanine

Preferred equity

Common equity

Senior rate

Mezz rate

Pref return

Common IRR target

Blended cost of capital

9.93%

LTC (debt only)

70.00%

Senior % of stack

65.00%

Equity (common+pref) %

30.00%

Stack imbalance

How the math works

Capital stack = senior + mezz + pref + common. Layers are sequential priority in waterfall distribution.

Blended cost of capital must be below project IRR for deal to clear. 200-400bps spread is normal. Below 100bps = too tight; negative spread = deal breaks.

How to Use

Enter total project cost.
Enter senior loan, mezz, pref, and common equity.
Enter rates for each.
Read stack percentages and blended cost.

Frequently Asked Questions

Typical stack?

Core: 60-70% senior, 30-40% equity. Value-add: 65-75% senior, 5-15% mezz/pref, 15-25% equity. Development: 60% senior, 10% mezz, 30% equity or pref.

What does 'balanced' mean?

Sources total exactly uses. If your stack sums to $10.1M on $10M cost, investigate the $100k — it's either a rounding error or missing source.

When to add more equity?

When senior LTV/DSCR caps out and mezz/pref too expensive vs project IRR. Equity expensive but dilutes risk — useful for sponsors without strong track record.

How does this interact with the rest of the capital stack?

Each tier of the stack affects the next. Senior debt constrains LTC and DSCR. Mezz and pref consume equity spread. Interest rate hedges protect DSCR but cost premium. Always model the full stack holistically — optimizing one tier alone often degrades another. Institutional underwriters run three or four scenarios across the stack before committing capital.