Refi Stress Test Calculator

Refinances stress under rate moves. This calculator tests scenarios.

Loan balance

NOI

Property value

Refi rate %

Amort years

Stressed DSCR

1.34

Stressed LTV %

68.18%

Annual debt service

$1,227,917

How the math works

Debt service at stressed rate. DSCR = NOI ÷ debt service. LTV = balance ÷ value.

Test refinance stress at today's rate + 150-250 bps, not just base case. Loans that were underwritten to 1.50x DSCR at 4% are running near 1.10x at 7% — covenant triggers and equity calls become real events at these stress levels.

How to Use

Enter current loan balance.
Enter NOI.
Enter current property value.
Enter refi rate stress %.
Enter refi amortization years.
Read stressed DSCR and LTV.

Frequently Asked Questions

Refi risk factors?

Rate rises: DSCR compresses, LTV rises. NOI declines: same effect. Value compression (cap rate widens): LTV rises, can trigger equity call. Test all three for full picture.

Covenants?

Most commercial loans covenant on 1.20-1.30x DSCR and 70-80% LTV at maturity. Stressed scenarios that breach covenants require pay-down, extension with concessions, or workout. Know the headroom before rate rolls over.

Mitigation?

Rate cap while floating (caps upside). Pay down principal with excess cash. Pre-negotiate extension option. Diversify debt stack maturities. Each reduces single-maturity stress event risk.

How do institutional LPs use this?

Institutional LPs expect sensitivity tables at every underwriting — base case plus at least two stress scenarios. Submit this output alongside traditional pro formas. LPs read quickly for two things: does the base case clear target IRR, and does the stress case produce positive equity multiple. If both yes, deal is investable. If stress goes negative, more equity or a lower purchase price is needed.