What Our Loan Calculator Can — and Can’t — Tell You
Most borrowers come to us with a property in mind and a straightforward question: can this deal work? The Investment Property Loan Calculator on our website provides an initial, high-level view of the key metrics lenders review first. With just a few clicks, it delivers the headline numbers quickly, at no cost, and with no obligation.
Below is a brief explanation of what those numbers represent.
Monthly payment is what the loan costs you each month. The calculator handles the math for any combination of loan size, rate, and amortization term you want to test.
Loan constant is the lender’s actual annual return on every loan dollar they lend to you. The loan constant is useful for comparing one loan offer to another and for negotiating better terms.
Debt Coverage (DCR) indicates how comfortably the property’s net operating income covers the mortgage payment. A 1.25x DCR means the property generates 25% more income than the debt service. Many conventional lenders target at least this level as a margin of safety, while the lowest-rate lenders often require higher coverage. Bridge lenders may be willing to underwrite lower coverage, depending on the business plan.
Net Cash Flow After Debt Service is what’s left in your pocket each year after the mortgage is paid.
Debt Yield is how lenders gauge property-level risk. It is essentially what return the property would generate relative to the loan proceeds (their investment amount) if the lender ever had to take it back. An easy way to remember the debt yield is it’s the “lender’s cap rate.”
Cash on Cash is the annual return on the equity you put down. Put $1M down, net $60,000 a year, and you’re earning 6% on your equity.
If those metrics are within typical lender ranges, the transaction is likely financeable. If not, the calculator can help identify gaps.
Where the calculator stops, and we start
What the calculator cannot determine is which lender will ultimately offer the most competitive execution for your specific transaction—along with the terms, structure, and pricing.
This is where a Slatt advisor adds value. You bring us the transaction, and we position it with the right lenders based on the property, sponsorship, and objectives.
We work with more than 30 correspondent lenders, including life insurance companies, banks, credit unions, agency lenders, CMBS lenders, and private debt funds. Each has distinct underwriting priorities, and many of the most important drivers are factors a calculator does not capture. For example:
Lease rollover. If the largest tenant has a lease expiration within the next 18 months, the viable lender universe can narrow substantially.
Asset type and market. One lender may prefer California industrial and avoid retail. Another may be highly competitive on multifamily but require a minimum loan size (e.g., $5M+). A regional bank may offer attractive terms, but only for existing clients or within a defined footprint.
Sponsorship. Your experience, net worth, and liquidity influence structure and pricing. Some lenders require personal guarantees; others do not. These requirements shape lender eligibility before pricing is even discussed.
Closing timeline. A 30-day closing requirement can significantly reduce the number of lenders able to meet the timeline.
Prepayment flexibility. A CMBS loan may offer aggressive pricing, but if you sell in three years, prepayment costs can offset the rate benefit. In some cases, a life company loan at a slightly higher rate may provide a better overall outcome once hold period and exit strategy are considered.
Property condition and environmental. Deferred maintenance, outdated environmental reports, or prior credit events can affect lender appetite and pricing.
A mortgage advisor considers these qualitative factors and aligns your transaction with the lender most likely to deliver the best overall execution—not simply the lowest quoted rate.
Give the calculator a go to run scenarios and understand how changes in leverage, rate, and amortization impact the core metrics. When you are ready to evaluate lender fit, structure, and execution in more detail, we are available to help.