Reviewed by Craig Hoebing, AZ Commercial Mortgage Banker CMB-1047342 · Updated October 2026
Estimate a maximum loan
Enter net operating income, a value or a cap rate, a rate you want to test, the amortization, a DSCR target, and a maximum LTV. Public indexes, if you want to start from 30-day Average SOFR, a Treasury yield, or Prime Rate, are on the commercial loan rates and calculator page. This site does not suggest a market rate.
Test your own numbers
Leave debt yield blank unless you want that third limit. The result is the smallest limit that still passes, and the line above the table names which test sets it.
Result
Enter NOI and a rate to see a loan size. Nothing is calculated until you do.
Estimates only, not a commitment or offer to lend. Capital Market Funds arranges financing and is not a lender. The rate is the one you typed or built from a public index plus your spread. It is not a quote.
How commercial lenders decide the loan amount
A commercial mortgage is sized from the property. The capital source that will fund the loan — a bank, a life company, an agency lender, a CMBS issuer, or a bridge investor — runs more than one test and uses the tightest result. Capital Market Funds arranges that financing from Scottsdale. It is not a bank, not a lender, and not the party that approves the loan.
Debt-service coverage, called DSCR, is net operating income divided by the annual loan payment. A target of 1.25 means income is meant to be at least 1.25 times the payment. The largest loan that passes is the balance whose payment, at your rate and amortization, uses up that allowed debt service. Interest-only debt service is the rate times the balance, so the amortization years do not apply.
Loan-to-value, called LTV, is the loan divided by property value. Value might be an appraisal, a purchase price, or income divided by a cap rate. The largest loan under this test is value times the LTV cap. The calculator does not appraise the building. Type a value, or leave it blank and type a cap rate. Plain definitions are in the commercial mortgage glossary.
Debt yield is income divided by the loan amount. It ignores the rate and the amortization. Leave the field blank to skip it. A higher minimum yield means a smaller maximum loan. The printed loan is the smallest limit you turn on, and that limit is the one that binds. The Arizona commercial mortgage guide covers the same tests along with process and costs.
What the rate and the amortization change
The rate is yours to type: an all-in figure, or a public index plus a spread you choose. The rates and calculator page shows 30-day Average SOFR, Treasury par yields, and Prime Rate, each with a source and a date. This site does not suggest a spread and does not publish a Capital Market Funds coupon.
A higher rate raises the payment and shrinks the DSCR loan. A longer amortization does the opposite, but only when DSCR is the limit that binds. If LTV is already the tightest test, stretching the amortization does not raise what you can borrow.
An illustrative example
The numbers in this section are an illustration. They are not a quote, not a listing, and not a building in Arizona or anywhere else. The 7.0 percent rate is chosen to show the arithmetic. It is not a rate a lender is offering.
Assume net operating income of $500,000 and a value of $8,000,000. The test uses 7.0 percent interest, 30-year amortization, a 1.25 DSCR, and a 65 percent LTV cap. Debt yield is left blank.
The LTV limit is $5,200,000. DSCR allows $400,000 of annual debt service, because $500,000 divided by 1.25 is $400,000. At 7.0 percent and 30 years, that payment supports a loan of $5,010,252. The smaller number wins, so the debt-service coverage (DSCR) limit is the one that binds. On these illustrative inputs, you could borrow up to about $5,010,252. Add a minimum debt yield and a third limit can set the loan instead. The calculator above uses the same formula.
Arizona property, same tests
A Phoenix industrial building, a Scottsdale office, and a Tucson shop use the same tests. This page does not publish a local cap rate or a statewide LTV cap. An appraisal, environmental review, and insurance still have to clear. On a refinance, prepayment on the existing note can erase the benefit of a new loan. Start with Arizona commercial refinance if a note is already on the property. The prepayment estimator is a simplification, not a payoff quote.
Capital Market Funds LLC holds Arizona commercial mortgage banker license CMB-1047342 and NMLS 1445066. The office is in Scottsdale. The firm arranges financing and is not a bank or a lender. A calculator result is not an approval and not an offer to lend.
What this page will not claim
It will not say a loan is approved, name a coupon a capital source is quoting this week, rank lenders, or state a cap rate for a submarket. Blank fields are skipped, or the result waits until income and a rate are both present. For a real file, send the address, the rent roll, and whether the job is a purchase or a refinance through the contact page. That message is a request to talk, not an application.