US-only multifamily financing insights for 5+ unit properties.

M Multi-Family USA

Interactive tool

Multifamily Loan Sizing Calculator

Back into maximum supportable debt from DSCR, debt yield, and LTV—the three metrics that bind most apartment loan term sheets.

Last updated:

Loan inputs

What's the max loan?

$

Market rent or in-place lease

$

Annual tax ÷ 12

$

Hazard premium ÷ 12

$

Optional

$

Optional

%

Max loan results

Max loan amount

$347,418

At 7.25% / 30-yr · keeps DSCR ≥ 1.0x

Max monthly P&I
$2,370
Monthly fixed costs (tax + ins + HOA)
$430
Max purchase @ 75% LTV
$463,223
Max purchase @ 80% LTV
$434,272

How this works

We solve for the maximum monthly P&I such that rent ÷ (P&I + fixed costs) ≥ your target DSCR, then back-calculate the loan amount using standard amortization. The purchase price ranges assume 75% and 80% LTV at closing. Adjust the target DSCR to model different lender requirements.

DSCR target comparison

Target DSCRMax P&I / moMax loanMax price @ 75%
0.75x$3,303$484,235$645,646
1.0x$2,370$347,418$463,223
1.25x$1,810$265,327$353,770

Save your results

Want a real lender-fit read?

Submit your numbers for a free underwriting and lender-fit review — usually within one business hour. No credit pull.

Get free deal review

Hand-picked next steps — go deeper on this topic, compare alternatives, or run the numbers.

How to size a multifamily loan

Commercial multifamily proceeds are usually limited by the lowest of three calculations:

  • DSCR constraint: Max Debt Service = NOI ÷ Min DSCR → solve for loan from payment
  • Debt yield constraint: Max Loan = NOI ÷ Min Debt Yield
  • LTV constraint: Max Loan = Property Value × Max LTV

The binding constraint determines proceeds. Always stress NOI and rates in downside cases.

Worked example: 56-unit stabilized acquisition

NOI: $980,000. Value: $14,000,000. Lender floors: 1.25x DSCR, 9.25% debt yield, 75% LTV. At a 6.5% rate and 30-year amortization, annual debt service on a $10.5M loan ≈ $798,000.

  • DSCR max ≈ $10.5M (1.23x at that balance—near floor)
  • Debt yield max: $980,000 ÷ 0.0925 ≈ $10.59M
  • LTV max: $14M × 75% = $10.5M

Proceeds likely bind near $10.5M. Explore structure trade-offs in our agency vs bridge execution guide.

Frequently asked questions

What is a multifamily loan sizing calculator?
A loan sizing calculator estimates maximum proceeds by testing DSCR, debt yield, and LTV constraints together. The binding constraint—the lowest proceeds amount—usually drives the lender term sheet.
How do lenders size multifamily loans?
Lenders calculate max loan from each metric (DSCR floor, debt yield floor, LTV cap) and lend to the lowest result. Sponsors should model base and downside cases before selecting a product.
Which constraint binds most often?
It depends on market, rate environment, and asset stage. In tight spread environments, debt yield often binds on stabilized deals. Value-add bridge deals may bind on in-place DSCR or LTV until stabilization.
Should I size to maximum leverage?
Not always. Maximum proceeds reduce equity requirement but shrink covenant headroom. Many experienced sponsors target conservative sizing to preserve refinance optionality.
How does property value affect loan sizing?
LTV caps proceeds as a percentage of appraised or lender value. NOI drives DSCR and debt yield caps. Weak value opinions or thin NOI can bind before leverage targets are reached.
Can I use this for agency and bridge scenarios?
Yes. Change DSCR, debt yield, and LTV assumptions to match each product's typical underwriting band, then compare proceeds side by side before requesting quotes.
Book Free Call Deal Review Call