Free commercial real estate calculator from Fynvorax. Model NOI, cap rate, DSCR, cash-on-cash return, and LTV for income property deals.
We consider that high-yield real estate investments demand surgical mathematical discipline. Unlike residential property purchases, commercial real estate (offices, industrial parks, multi-family complexes, retail strips) is appraised purely by its cash-generative power. Professional property lenders and private equity groups evaluate deals based on strict transaction leverage formulas. Our commercial calculator computes Net Operating Income (NOI), Capitalization Rate (Cap Rate), Debt Service Coverage Ratio (DSCR), and Cash-on-Cash yields in real time, enabling you to inspect transactions like
Most commercial banks and lenders require a minimum DSCR of 1.20x to 1.25x. This ensures that the property generates 20% to 25% more net operational income than required of the annual mortgage payments, shielding the deal against tenant vacancy.
Cap Rate measures the property's unleveraged performance based on purchase price (NOI / Purchase Price). Cash-on-Cash measures the yield of cash invested after factoring in mortgage leverage (annual net cash flow / physical equity down payment).