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NAV Loan Calculator

NAV loans are fund-level credit facilities secured by fund net asset value — not individual properties. Used to accelerate distributions, bridge capital calls, or fund new acquisitions without triggering LP contributions. This calculator sizes the loan, annual carry, and the incremental leverage on fund equity.

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NAV loan size

$15,000,000

Annual interest

$1,425,000

Total interest over term

$4,275,000

Leverage on remaining NAV

17.65%

How the math works

NAV loans are subscription-style credit facilities secured by fund net asset value — not individual properties. Used to accelerate distributions, bridge capital calls, or fund new acquisitions without triggering a capital call. Typical LTV: 10-20% of NAV at rates 300-500 bps above SOFR.

Private credit funds have increasingly offered NAV loans to real estate GPs. Use judiciously — NAV loans add leverage at the fund level on top of property-level debt, amplifying both returns and risk.

How to Use

  1. Enter fund NAV.
  2. Enter NAV loan LTV (typical 10-20%).
  3. Enter interest rate and term.
  4. Read loan size, annual carry, and leverage metric.

Frequently Asked Questions

NAV loan vs subscription credit line?

Subscription credit line is secured by LP commitment. NAV loan is secured by portfolio of assets. NAV loans are later-stage funding (post-call-up); sub-lines are early-stage (pre-call-up).

When to use NAV loan?

Distribute early to LPs without selling. Bridge between exits and new acquisitions. Fund cap-ex or development without triggering LP capital call. Smooth IRR by front-loading distributions.

Risk?

Adds leverage on top of property-level debt. If portfolio values decline, NAV loan leverage accelerates equity losses. Typical covenant: if NAV drops below a threshold, NAV loan must be paid down. Triggers can be painful.

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