Takeout Proceeds Calculator

Permanent loan proceeds are the lower of LTV-capped and DSCR-capped amounts. This calculator solves both constraints.

Stabilized NOI

Stabilized value

Max LTV %

Min DSCR

Rate %

Amort years

Takeout proceeds

$20,800,000

LTV-capped loan

$20,800,000

DSCR-capped loan

$23,820,460

How the math works

Proceeds = min(LTV × value, NOI ÷ DSCR ÷ annual debt constant).

Track both constraints through underwriting. A deal that's LTV-capped may gain proceeds from a new appraisal; a DSCR-capped deal needs NOI growth or rate improvement. Know which lever you're pulling.

How to Use

Enter stabilized NOI.
Enter stabilized value.
Enter max LTV %.
Enter min DSCR.
Enter rate and amortization.
Read takeout proceeds.

Frequently Asked Questions

LTV or DSCR constraint?

Proceeds = min(LTV × value, NOI ÷ DSCR ÷ annual constant). Tighter of the two binds. Higher cap rate markets typically hit DSCR first; tighter cap rates hit LTV first.

Maximizing proceeds?

Push stabilized NOI: full rent roll, careful expense recoveries, documented stabilized pricing. Appraisal quality directly affects LTV cap. Rate buydowns widen DSCR capacity at fee cost.

Reserves and holdbacks?

Lenders withhold 1-3% for interest reserves, debt service reserves, TI/LC escrows. Net proceeds drop 1-3% from quoted loan amount. Plan for actual cash available, not face amount.

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.