Commercial Mortgage Qualifier
  Commercial Real Estate Mortgage Qualifier  
The Commercial Mortgage Qualifier Calculator calculates the maximum potential mortgage for Commercial Real Estate based on its financial viability. It factors in income, additional income sources, and adjustments for expenses, to determine the maximum Principal and Interest payments (P&I) from the Net Operating Income (NOI) and chosen Debt Service Coverage Ratio (DSCR).
  Calculator  
Currency:
  1. Annual Income        
Total potential rent from all units:
CAM reimbursement:
Property tax reimbursement:
Insurance reimbursement:
Percentage rents:
Misc. other income:
Number of inside square feet:
Total Potential Annual Income:
  2. Expenses        
Vacancy factor:
Vacancy losses:
EGI Effective Gross Annual Income:
Management fees:
Management cost:
  3. Other Annual Expenses      
Property taxes:
Maintenance:
Utilities:
Insurance:
Legal/accounting:
Misc other expenses:
Labor:
TOTAL Other Annual Expenses:
Reserves per sq.ft.:
Annual reserves:
Allowance for Tenant Improvements and leasing psf:
TI and Leasing:
NOI Net Operating Income, Annual:
DSCR Debt service coverage ratio:
Maximum P and I Monthly Mortgage Payment: 
permitted for this DSCR
Interest rate per year:
Amortization period of loan (months):
  Maximum Possible Mortgage:  
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DISCLAIMER: This calculator is based on certain assumptions. The projections are estimates only. Anyone using or relying on this calculator is advised to seek competent legal, financial, and/or tax advice. We accept no responsibility for the outcome of any loan you or your clients make based on the recommendations of this calculator, nor do we guarantee the accuracy of the calculations.
   
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  Calculator Parameters  
1 Currency:
Currency of loan. Select from the dropdown list.
  1. Annual Income  
2 Total potential rent from all units:
The total rent for all commercial units.
3 CAM reimbursement:
The total for Common Area Maintenance (CAM) reimbursement.
4 Property tax reimbursement:
The amount for property tax reimbursement.
5 Insurance reimbursement:
The amount for insurance reinbursement.
6 Percentage rents:
Percentage rent base plus percentage of sales above a set breakpoint.
7 Misc. other income:
The total for any other income received.
8 Number of inside square feet:
The total inside sq ft.
9 Total Potential Annual Income: Calculated field
The total of all annual income.
  2. Expenses  
10 Vacancy factor:
The % vacancy factor you choose.
11 Vacancy losses: Calculated field
The 'Vacancy factor' % multiplied by the 'Total Potential Annual
income'.
12 EGI Effective Gross Annual Income: Calculated field
The 'Total Potential Annual Income' minus  'Vacancy losses'.
13 Management fees:
The % you choose to cover management fees.
14 Management cost: Calculated field
The 'EGI Effective Gross Annual Income' multiplied by 'Management
fees' % to give the management cost.
  3. Other Annual Expenses  
15 Property taxes:
The total amount for annual property taxes for all units.
16 Maintenance:
The total amount for annual maintenance for all units.
17 Utilities:
The total amount for annual utilities for all units.
18 Insurance:
The total amount for annual insurance for all units.
19 Legal/accounting:
The total amount for annual legal and accounting for all units.
20 Misc. other expenses:
The total amount for any other annual expenses for all units.
21 Labor:
The total amount for any annual labor expenses.
22 TOTAL Other Annual Expenses: Calculated field
The total of all the annual expenses.
23 Reserves per sq ft.:
An amount to represent the reserves for each sq ft.
24 Annual reserves: Calculated field
The 'Number of inside square feet' multiplied by the 'Reserves per sq. ft'.
25 Allowance for Tenant Improvement and leasing psf:
The amount provided per sq ft to customize the space for a tenant.
26 TI and Leasing: Calculated field
The 'Allowance for Tenant Improvements and leasing psf' multiplied
by the 'Number of inside square feet'.
27 NOI Net Operating Income: Calculated field
The 'EGI Effective Gross Annual Income' minus 'Management cost'
minus 'TOTAL Other Annual Expenses' minus 'Annual reserves'
minus 'TI and Leasing'.
28 DSCR Debt Service Coverage Ratio: Calculated field
The ratio you choose to represent the Debt Service Coverage. We
use 1.25 as an example.
29 Maximum P and I Monthly Mortgage Payment: Calculated field
permitted for this DSCR
The 'NOI Net Operating Income, Annual' divided by 'DSCR Debt
service coverage ratio' divided by 12.
30 Interest rate:
The interest rate you enter for the mortgage.
31 Amortization period of loan (months):
The number of months to amortize the loan. E.g. 360 for 30 years
or 180 for 15 years.
32 Maximum Possible Mortgage: Calculated field
The Maximum possible mortgage, based on the 'Interest Rate, the
Amortization period of loan (months)', and the 'Maximum P and I 
Mortgage Payment Annual'.