Commercial Real Estate Calculator – DSCR, Cap Rate, Cash-on-Cash

How to Use This Calculator

Start with the property basics: enter purchase price, planned gross rent roll, and any expected vacancy or other income. Add operating expense estimates and financing assumptions to see how cash flow, debt coverage, and returns shape up.

1. Enter purchase price, expected gross income, and your vacancy/credit loss forecast.
2. Add taxes, insurance, management, utilities, repairs, HOA, and a capital reserve so the operating expense line reflects all recurring costs.
3. Choose the debt profile by supplying LTV or a manual loan amount, interest rate, amortization schedule, loan term, and closing costs.
4. Review the outputs: NOI, cap rate, DSCR, monthly debt service, balloon balance, and cash-on-cash return illustrate financing capacity and cash requirements.

Methodology

The calculator derives Effective Gross Income (EGI) by subtracting vacancy from scheduled income and then adds any other sources of revenue. Operating expenses combine taxes, insurance, third-party management, utilities, repairs, HOA fees, and a capital reserve. NOI equals EGI plus other income minus the full expense load. Debt service is calculated using the standard fixed-rate amortization formula, and the balloon balance reflects any remaining principal at the end of the loan term. DSCR, cap rate, and cash-on-cash return come directly from NOI, annual debt service, the property price, and the buyer’s equity outlay.