Analyze a commercial deal in minutes.
Deal analyzer, lowest down payment (conventional vs SBA), cap rate, value, loan payment, DSCR, maximum loan and cash-on-cash return. Free, no sign-up. Results update as you type.
Deal analyzer
Enter a price and income to see the loan, payment, cash flow and returns. Drag the slider to change your down payment.
Lowest down payment: Conventional vs SBA
Uses the price and NOI above. Lenders cap the loan two ways: by loan-to-value and by debt coverage (DSCR). Your minimum down payment is whichever is higher. Edit the assumptions in the table.
| Route | Rate | Amort. | Min. down | Min. DSCR | Lowest down payment | Loan | Monthly payment | DSCR | Cash-on-cash |
|---|---|---|---|---|---|---|---|---|---|
| Conventional commercial Investment or owner-user | $625,000 (25.0%) | $1,875,000 | $12,955 | 1.29 | 7.1% | ||||
| SBA 504 Owner-user · 50% bank + CDC | / | $362,500 (14.5%) | $2,137,500 | $14,491 | 1.15 | 7.2% | |||
| SBA 7(a) Owner-user · variable rate | $875,000 (35.0%) | $1,625,000 | $14,481 | 1.15 | 3.0% |
The SBA 504 rate column shows bank / CDC rates. SBA loans require your business to occupy at least 51% of the property; for owner-users, enter your business cash flow available for rent as NOI. Example rates only; closing costs, SBA guarantee and CDC fees are not included. Estimates, not a loan offer.
More calculators
1. Net operating income (NOI)
Start here. NOI drives value and financing.
NOI = gross rent − vacancy + other income − operating expenses (before loan payments).
2. Cap rate & property value
Enter a price to get the cap rate, or a cap rate to get the value.
Cap rate = NOI ÷ price. Value = NOI ÷ cap rate.
3. Loan payment & DSCR
See the payment and whether the income covers it.
DSCR = NOI ÷ annual debt service. Many lenders look for 1.20–1.30+.
4. Maximum loan by DSCR
How much loan can the property's income support?
Lenders also cap the loan by loan-to-value. The lower of the two usually applies.
5. Cash-on-cash return
Your first-year cash return on the money you put in.
Cash-on-cash = (NOI − annual debt service) ÷ total cash invested. Before taxes, reserves and capital improvements.
Calculator FAQ
What is a good cap rate for commercial property?
It depends on the property type, location, tenant quality and interest rates. Stabilized properties in strong Bay Area locations usually trade at lower cap rates than older or higher-risk properties in secondary markets. Compare against recent sales of similar properties, not a single rule of thumb.
How is DSCR calculated?
Debt service coverage ratio equals net operating income divided by annual debt service (12 months of loan payments). Many commercial lenders want 1.20 to 1.30 or higher.
What is cash-on-cash return?
Annual pre-tax cash flow after the mortgage, divided by the total cash you invested (down payment plus closing and other upfront costs).
Are these results accurate for my property?
They are estimates based on the numbers you enter. Real underwriting uses verified income, expenses, vacancy, reserves and lender terms. Ask us to review a specific deal.