Tools > Sample Loan Calculation

Sample Loan Calculation

Income and expense analysis:

Gross Income from Rents +             $100,000 (GI)
Gross Income from other income +    $3,500 (GI other)
Gross Income from all sources           $103,500 (GPI)

Vacancy and collection loss – 7.5%   $7,762
Rent concessions –                           $1,000

Effective Gross Income                 $94,738 (EGI)


Expenses –

Fixed
  • Taxes
  • Insurance
Variable
  • Management off-site (3-5%) of EGI
  • On-site manager-per unit or % of GPI
  • Utilities
  • Maintenance/repairs
  • Administrative
  • Legal
Reserves for replacements (annual expense)
Capital Improvements (one time major expense)

Total Expenses                             $36,000

Net Operating Income (NOI)=    $58,738 (NOI)

NOI-$58,738/l.25:1 DSCR=$46,990 Income available for debt

If I now have $46,990 available for a loan and using a 6.00% interest rate with a 30-year amortization the Lender can support a loan of approximately $653,128 (rounded).