Wednesday May 16th, 2012

Commercial Loan Calculator

Use this calculator to estimate your debt service coverage with a new commercial loan. If your debt service coverage is greater than 1.25, including your new loan payment, you have a good chance of being approved.

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Results Summary
Loan amount	LOAN_AMOUNT
New monthly payment	MONTHLY_PAYMENT
Interest rate	INTEREST_RATE
Amortization	TERM years
Your Income
Annual Verifiable net income	VERIFIABLE_NET_INCOME
Annual depreciation expense	DEPRECIATION_EXPENSE
Other non-cash charges	OTHER_NON_CASH_CHARGES
Total annual net cash income	TOTAL_NET_CASH_INCOME
Your Monthly Obligations
Real estate mortgage	REAL_ESTATE_MORTGAGE
Business line of credit	BUSINESS_LINE_OF_CREDIT
Auto loans	AUTO_LOANS
Credit cards	CREDIT_CARDS
Other loans	OTHER_LOANS
Total existing obligations	TOTAL_EXISTING_OBLIGATIONS
Monthly debt payments eliminated	MONTHLY_DEBT_PAYMENTS_ELIMINATED
Total remaining obligations	TOTAL_REMAINING_OBLIGATIONS
Debt Service Coverage
Annual existing obligations	+ ANNUAL_EXISTING_OBLIGATIONS
Annual existing obligations eliminated with new loan	- ANNUAL_DEBT_PAYMENTS_ELIMINATED
Annual remaining obligations	= TOTAL_ANNUAL_REMAINING_OBLIGATIONS
New loan annual debt service	+ ANNUAL_PAYMENT
Total annual debt service	= ANNUAL_DEBT_LOAD
Debt Service Coverage (DSC)	DEBT_SERVICE_COVERAGE
The DSC is determined by dividing the total annual net cash income by the total annual debt service. This would be your annual net cash income of TOTAL_NET_CASH_INCOME divided by your total annual debt service of ANNUAL_DEBT_LOAD.
Debt service required ratio	DEBT_SERVICE_REQUIRED_RATIO
DEBT_SERVICE_MSG

Payment schedule

**REPEATING GROUP**

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Definitions

Loan amount
Total amount of your loan.

Amortization
Payment period in years.

Interest rate
Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.

New monthly payment
Monthly payment for this loan.

Annual Verifiable net income
Your annual net income from IRS tax returns or other financial statements.

Annual depreciation expense
Since depreciation reduces your net income, but not your cash flow, we add back depreciation in calculating your total net cash income.

Other non-cash charges
Like depreciation, these are other non-cash charges to your net income that should be added back to calculate your total net cash income for the year.

Real estate mortgage
Your monthly payment for any real estate mortgages.

Business line of credit
Your monthly payment for any business lines of credit.

Auto loans
Your monthly payment for any auto loans.

Credit cards
Your monthly payment for any credit cards.

Other loans
Your monthly payment for any other outstanding loans.

Monthly debt payments eliminated
Enter the amount, if any, of the monthly obligations you entered above that will be paid off by this new loan.

Debt Service Coverage (DSC)
The Debt Service Coverage (DSC) is determined by dividing the total annual net cash income by the total annual debt service. If you have a DSC of 1.25 or higher, there is a good chance that you will be approved for your loan.