underwriting and offer workspaces · Intermediate

Binding-constraint loan sizer

Identify the binding loan constraint under stated assumptions. Includes interactive DSCR LTV debt-yield and optional LTC sizing calculation.

Commercial Debt Advisory EditorialModel 1.0.0Reviewed by Jason Taken · 2026-10-21T19:41:22.818Z

Your assumptions

Illustrative starting values. Replace them with your own evidence. Inputs stay in this browser.

Your scenario, explained

Results

Calculation assumptions

Version 1.0.0 · Educational scenario, subject to the stated assumptions.

How this calculation works

Method and assumptions

DSCR capacity = nonnegative underwritten cash flow ÷ minimum DSCR ÷ annual mortgage constant. Compare with value × LTV, eligible cost × LTC and nonnegative cash flow ÷ debt-yield requirement. The minimum binds.

Worked example

With $300,000 annual underwritten cash flow, a 6.5% rate, 30-year amortization and 1.25x required DSCR, the DSCR loan limit is $3,164,216.39. The other entered limits are $3,500,000 at 70% of $5 million value; $3,975,000 at 75% of $5.3 million cost; and $3,529,411.76 at 8.5% debt yield. DSCR is the binding constraint.

Before using the result

Know the boundaries

Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.

Calculation standards →