Commercial Real Estate Calculators

Net operating income (NOI) is a critical commercial real estate metric calculated by subtracting your operating expenses (opex) from total revenue. Our NOI Builder helps you instantly subtract op expenses to find your property's true cash flow.

A cap rate represents your unlevered yield on a property. By dividing your NOI by the cap rate, you can quickly determine an accurate property valuation (or property value). Use our Cap Rate Calculator to estimate property value instantly.

The debt service coverage ratio (DSCR) shows a lender whether a property generates enough income to cover its debt payments. Commercial lenders typically require a debt coverage ratio above 1.20 or 1.25 to qualify for financing.

IRR (Internal Rate of Return) measures the annualized return of an investment over time, accounting for cash flow and equity at exit. Our free IRR Calculator runs entirely in your browser to evaluate long-term commercial real estate (CRE) investments securely.

The loan to value ratio (LTV) compares the loan amount to the property's appraised value. While standard mortgages offer up to 80% LTV, commercial loans often cap the loan to value ltv at 65% to 75% depending on the asset class and lender risk.

A hard money loan or bridge financing is a short-term, asset-based loan used for quick acquisitions, renovations, or bridging the gap before securing long-term debt. A hard money lender prioritizes the physical asset's value over personal credit scores.

The Small Business Administration 7a loan (SBA 7a loan) is ideal for owner-occupied commercial real estate. It offers lower down payments (often just 10%) and longer repayment terms, making it highly attractive through an approved SBA 7 a lender.

The total cost of an eviction involves lost rent, court fees, property turn costs, and hiring an eviction lawyer. Our Tenant Default Cost Calculator helps property managers estimate these exact commercial eviction expenses.

Direct investing offers more control and tax benefits, while a REIT (real estate investment corporation or real estate income trust) provides passive income, liquidity, and diversification. Both are viable paths for building real estate wealth.

Unsecured loans for businesses don't require collateral but come with higher rates. In contrast, commercial real estate loans use the property as collateral, often relying on a strong Debt Yield metric to determine risk from a commercial lender's perspective.

In a fluctuating market, an interest rate swap (or fixed rate swap) protects borrowers with variable-rate loans from rising rates by locking in a predictable cost. Our Interest Rate Cap calculator helps you estimate the upfront cost of this protection.

A commercial real estate broker (or agent) helps negotiate acquisitions and leases, while commercial property managers handle daily operations, rent collection, and tenant relations. Both professionals are vital to scaling a profitable CRE portfolio efficiently.