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    Deal Feasibility Analyzer

    Analyze DSCR, leverage, value, and equity needs with this commercial real estate deal feasibility tool from CapitalAx.

    Deal Structure

    $
    $
    $
    $

    Loan Terms

    %

    Property Income

    $
    %

    Lender Requirements

    %

    Deal Assessment

    Strong Financing Profile

    Monthly Payment

    $11,084.87

    Annual Debt Service

    $133,018.41

    DSCR

    1.50x

    LTV

    52.5%

    Estimated Value (NOI/Cap)

    $2,857,142.86

    Max Loan (by DSCR)

    $1,804,261.50

    Equity Required

    $500,000.00

    Total Project Cost

    $2,000,000.00

    This deal appears to support financing based on the projected NOI and target DSCR. The leverage is within typical lender comfort ranges. A CapitalAx advisor can help you identify the best loan programs for this scenario.

    This is an informational estimate only. Actual loan terms depend on lender, market, property condition, sponsorship, and full underwriting.

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    What This Analyzer Measures

    This tool combines the checks a commercial lender runs when a deal first crosses their desk. It calculates the debt service on your proposed loan, tests the property's NOI against that debt service for coverage, estimates value by capitalizing NOI at the market cap rate, checks the resulting loan to value against a typical limit, and totals the equity required to close. The output is a single feasibility read: whether the deal as structured is likely to support financing.

    The Three Constraints That Decide Feasibility

    Most commercial lenders test a deal against coverage and leverage at minimum. The debt service coverage ratio divides NOI by annual debt service, and most conventional lenders generally want 1.20x to 1.35x. Loan to value compares the loan to the property's value, with typical limits of 65 to 80 percent. Some programs add a debt yield floor as a third test. A deal must clear every constraint the lender applies, so the most restrictive one sets the terms.

    DSCR = NOI / Annual Debt Service
    LTV = Loan Amount / Property Value × 100
    Equity Required = Total Project Cost - Loan Amount

    Reading Your Result

    A strong profile means the DSCR and leverage both sit inside typical lender comfort ranges, and conventional options are generally available. A moderate profile usually means one constraint is tight, and a lower loan amount, a better rate, or a higher NOI could bring the deal in line. A stretch scenario does not end the conversation. Value add deals with thin in place coverage are exactly what bridge loans and structured capital exist for, since those programs underwrite to the stabilized numbers rather than today's.

    What the Analyzer Cannot See

    Feasibility on paper is necessary but not sufficient. Lenders also weigh property condition, tenant quality and lease terms, market fundamentals, the sponsor's track record on the asset class, and liquidity after closing. Two deals with identical numbers can price very differently based on those factors, which is why the output here is an informational estimate rather than a term sheet.

    Frequently Asked Questions

    Most test the deal against coverage and leverage at minimum. They want the DSCR, which is NOI divided by annual debt service, generally at 1.20x to 1.35x or better, and the loan to value generally at or below 65 to 80 percent depending on property type. Some programs add a debt yield floor. The deal must clear every test the lender applies.

    Most conventional lenders generally want 1.20x to 1.35x. Agency multifamily programs can accept ratios near the lower end of that range, while special use properties often face stricter floors. Bridge lenders may accept lower in place coverage when the stabilized projection is strong.

    Equity required equals total project cost, meaning purchase price plus renovation and closing costs, minus the loan amount. With typical leverage limits of 65 to 80 percent, borrowers generally bring 20 to 35 percent of the project cost as equity, plus reserves the lender may require.

    A weak result usually means the leverage is aggressive relative to the income. Options generally include bringing more equity, negotiating a lower price, improving NOI before financing, or using a bridge or structured program that underwrites to the stabilized numbers rather than the in place numbers.

    The analyzer capitalizes NOI at the market cap rate you enter, so value equals NOI divided by cap rate. This is the standard income approach for commercial property. It is an estimate, and a lender will order a formal appraisal that also weighs condition, leases, and comparable sales.