Reviewed by Craig Hoebing, AZ Commercial Mortgage Banker CMB-1047342 · Updated October 2026
How much can I borrow on a commercial property?
Commercial lenders size a loan from the property's net operating income, its value, and the payment your rate and amortization produce. The calculator keeps the smallest of the DSCR, LTV, and debt-yield limits and names the one that sets how much you could borrow. Type your own figures for an estimate only: the result is not a commitment or an offer to lend, and Capital Market Funds arranges financing and is not a lender.
A longer explanation of those tests, with an illustrative example, is on how much you can borrow on commercial real estate.
What counts as a workable coverage ratio is not a number this page prints. The national note is what is a good DSCR. Arizona income property of five or more units, and other commercial property, is Arizona commercial DSCR.
30-day Average SOFR
3.857%
New York Fed SOFR Averages. As of October 14, 2026.
NY Fed 30-day compounded average. Not CME Term SOFR and not the overnight print.
| Benchmark | Level | As of | Source | Calculator |
|---|---|---|---|---|
| 30-Day Average SOFRNY Fed 30-day compounded average. Not CME Term SOFR and not the overnight print. | 3.857% | October 14, 2026 | New York Fed SOFR Averages | |
| 5-Year U.S. Treasury | 5.00% | October 14, 2026 | Treasury.gov daily par yield curve | |
| 7-Year U.S. Treasury | 5.09% | October 14, 2026 | Treasury.gov daily par yield curve | |
| 10-Year U.S. Treasury | 5.19% | October 14, 2026 | Treasury.gov daily par yield curve | |
| Prime Rate | 7.00% | October 13, 2026 | Federal Reserve H.15 | |
| SOFR (overnight)Overnight secured rate. Separate from the 30-day average above. | 3.89% | October 13, 2026 | New York Fed SOFR |
1-month CME Term SOFR is not shown. CME licenses that benchmark, and use of the figure on CME's own website is view-only. This page does not have a free, publicly redistributable Term SOFR source, so it does not display one.
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.
Last retrieval attempt October 14, 2026 at 7:42 PM MST. Every row above was retrieved live.
How the sizing math works
Property value is the number you enter. If you leave value blank and enter a cap rate, value is NOI divided by that cap rate. Maximum loan by LTV is value times the LTV you set. Maximum loan by debt yield, when you enter a minimum, is NOI divided by that yield. Maximum loan by DSCR starts from the annual debt service your NOI can support at the target DSCR, then converts that payment into a loan balance at the rate you entered. Interest-only uses rate times balance. An amortizing loan uses the standard mortgage payment over the years you entered.
The resulting loan is the smallest of those limits. That limit is the binding constraint. LTV, DSCR, debt yield, and the monthly and annual payment are then computed on that loan amount, not on the limits that did not bind.
How each source is typically quoted
Structure, not a coupon. This table does not list lender spread ranges. All-in pricing is the index, the spread a capital source will actually clear, and the asset.
| Capital source | How it is quoted | Notes |
|---|---|---|
| Agency (Fannie Mae / Freddie Mac) | Typically a spread over Treasuries or SOFR, depending on product | Permanent multifamily. Pricing moves with the Treasury curve and with agency mortgage spreads — not with a webpage coupon. |
| HUD / FHA | Coupon plus mortgage insurance premium, set in the HUD process | Long-term, fully amortizing structures. Timing follows HUD, not a private credit calendar. |
| Life company | Treasury plus spread; rate lock often at application | Core and core-plus cash-flowing assets. Conservative leverage by design. |
| CMBS | Swaps or Treasuries plus the then-current new-issue spread | Conduit and single-asset when life or bank will not stretch on proceeds or structure. |
| Bank / credit union | SOFR, Prime, or a fixed hold, depending on the institution | Relationship and portfolio debt. Covenants and recourse are part of the conversation. |
| Bridge & private | Typically floating over SOFR, plus the private credit spread | Transitional, value-add, and time-sensitive capital sourced from private investors. |
Published Q2 2026 context
CBRE reported that average commercial mortgage interest rates edged down to 5.7% in Q2 2026, from 5.9% a year earlier, on fixed-rate five- to 10-year permanent loans.
Source: CBRE, Commercial Real Estate Lending Fundamentals Remain Strong in Q2 2026. A third-party research print, not a Capital Market Funds rate.
In the same release, CBRE reported commercial mortgage loan spreads of 204 bps and multifamily loan spreads of 162 bps in Q2 2026 (year-over-year tighter by 21 bps and 15 bps, respectively).
Source: CBRE, Q2 2026. A third-party research print, not a Capital Market Funds rate.
Questions about borrowing on a commercial property
- How much can I borrow on a commercial property?
- There is no single dollar amount that fits every commercial property. Lenders size the loan from net operating income, property value, and the payment produced by the rate and amortization you are testing. The maximum is the smallest of the debt-service coverage (DSCR) limit, the loan-to-value (LTV) limit, and a debt-yield limit if you set one. This calculator runs that math on numbers you type. The result is an estimate, not a commitment or an offer to lend.
- What DSCR do lenders use?
- DSCR is net operating income divided by the annual loan payment. A target above 1.00 means income is meant to cover the payment with something left over. Capital sources set their own targets, and the same source can use a different target for the property type, the sponsor, and the market. This site does not publish a required DSCR. Enter the target you want to test.
- What LTV do commercial lenders allow?
- LTV is the loan divided by property value. Value may be an appraisal, a purchase contract, or income divided by a cap rate you supply. The maximum LTV differs by capital source and by property. This site does not publish an allowed LTV, and the calculator does not appraise the building. It uses the maximum percent you enter.
- What is debt yield?
- Debt yield is net operating income divided by the loan amount. Unlike DSCR, it does not use the interest rate or the amortization. A minimum debt yield caps the loan at income divided by that yield, which keeps a low rate from inflating the proceeds. Leave the field blank to skip the test. A higher minimum yield produces a smaller loan.
- Does amortization change how much I can borrow?
- It changes the loan when the DSCR test is the one that binds. A longer amortization lowers the annual payment, so the same income can support a larger balance at the same DSCR and rate. Interest-only debt service is the rate times the balance, and the year field is ignored. LTV and debt yield do not use the payment, so a longer amortization does not raise those two limits.
- Does this calculator give me a quote?
- No. The figure is an estimate from your inputs. It is not a quote, a commitment, or an offer to lend. Capital Market Funds arranges financing and is not a lender. A capital source still has to underwrite the property and the sponsor. To talk about a real file, use the contact page.
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