Commercial Property Calculator Australia
Free commercial property calculator for Australia. Model investment, owner-occupied and mixed-use scenarios with repayments, NOI, DSCR / ICR, LVR, yield and cash-needed estimates.
✔ Uses user-settable commercial lending assumptions (indicative only)
✔ Want the lending rules in plain English? Read the Commercial Property Finance Guide.
This calculator is a guide only. If your DSCR is tight, your WALE is short, or you’re relying on a strong valuation, speak with a Commercial Mortgage Broker before you sign — or use the Business Loan Eligibility Check to triage your scenario.
Calculator
Use this for leased investment, owner-occupied or mixed-use commercial property. Enter actual rent if the property is leased. If the owner or business can help service the loan, add that support as well.
1) Scenario type
Start by telling the calculator whether the property is mainly an investment, mainly owner-occupied, or a mix. This changes whether the debt test leans more on tenant rent, borrower / business support, or both.
2) Loan settings
Commercial lenders do not all assess property debt the same way. Debt service coverage ratio (DSCR) asks whether the annual support available for the loan can cover the full annual loan bill. Interest coverage ratio (ICR) is a lighter test that asks whether that support can cover the annual interest bill only.
3) Property income
Enter the rent for the space that is actually leased. If the property is owner-occupied or vacant, you can still enter a market-rent estimate for value / yield context, then choose “market-rent estimate only” above so that it is not counted in the debt test.
4) Value / LVR
Add a value if you want yield, LVR, deposit modelling and an LVR-based cap. The final indicative maximum uses the lower of the cashflow limit and the LVR limit when both are available.
5) Upfront purchase costs (optional)
These fields help estimate total purchase costs and cash needed to complete. Choose the state or territory and the calculator can auto-estimate transfer duty plus editable benchmark legal and lender costs.
Results
Quick answer first.
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Could this scenario work? i
Current IO / today view i
Reversion / refinance view i
What should you check next? i
Send these numbers to a Commercial Mortgage Broker
Submit the result and a broker can sense-check rent, business support, valuation, LVR appetite and the real cash needed to complete.
Open the form or continue through the results below.
Step 1 - How the calculator assessed your scenario
Start here if you want to see what income or support was counted and what loan settings were tested.
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| Property useInvestment, owner-occupied or mixed. | — |
| Rent basisWhether the rent is counted in the debt test or shown for context only. | — |
| Annual tenant income counted in the debt testActual rent after allowance and owner-paid outgoings, if it is being counted. | — |
| Annual borrower / business support counted in the debt testExtra support the borrower or business says it can contribute toward the loan. | — |
| Total annual support used in the debt testThis is the annual amount the calculator compares with the annual loan bill. | — |
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| Entered loanThe specific loan size you asked the calculator to test. | — |
| Rate and termThe interest rate and loan length used for repayment and coverage modelling. | — |
| Repayment nowThe monthly repayment used at the current phase of the loan. | — |
| Repayment after IO periodOnly relevant if you selected interest-only first. | — |
| Coverage targetThe minimum DSCR or ICR target you selected. | — |
| Stressed rateThe higher rate used for the stressed coverage sense-check. | — |
Step 2 - Upfront cash and purchase setup
This step shows how much equity / deposit and cash-to-complete may be needed based on the value, loan and purchase costs you entered.
This is the setup if you proceed at the loan amount you typed in.
| Property price / valueThe value figure used for deposit, LVR and cash-needed calculations. | — |
| Entered loanThe loan amount you asked the calculator to test. | — |
| Equity / deposit neededValue minus the entered loan. | — |
| Total additional purchase costs enteredStamp duty / transfer duty + legal + lender / settlement fees. | — |
| Total cost to purchaseProperty price / value plus the additional purchase costs currently shown. | — |
| Current cash to completeEquity / deposit plus the purchase costs currently shown. | — |
This is what the same property would roughly look like at the calculator’s current indicative ceiling.
| Indicative maximum loanThe current rough ceiling from the calculator. | — |
| Equity / deposit at that loan sizeValue minus the calculator’s indicative ceiling. | — |
| Total purchase costs enteredThe same purchase-cost allowance is carried through here. | — |
| Estimated cash needed at the indicative ceilingDeposit / equity plus the purchase costs you entered. | — |
| Main limiterThe main reason the loan size stops where it does. | — |
Step 3 - Monthly cost, coverage and indicative range
These are the detailed outputs. If a tile says a number is not used in the debt test, it is being shown for context only.
Monthly rent shown on your chosen GST basis i
Net operating income (NOI) per month i
Borrower / business support per month i
Total annual support used in the debt test i
Total purchase costs entered i
Estimated cash needed at your entered loan i
Net yield on entered value i
Implied capitalisation rate from current rent and value i
Indicative value from capitalisation rate i
Monthly repayment now i
Monthly repayment after the IO period i
Loan-to-value ratio (LVR) on entered loan i
Debt service coverage ratio (DSCR) on the current loan setting i
Debt service coverage ratio (DSCR) if the facility had to revert / refinance i
Debt service coverage ratio (DSCR) at stressed rate i
Maximum loan from actual rent only i
Maximum loan from rent + support on the current loan setting i
Maximum loan if the facility had to revert / refinance i
Maximum loan from loan-to-value ratio (LVR) i
Final indicative maximum loan i
Breakeven interest rate for your target i
Indicative only. NOI, yield, value, coverage and max-loan outputs use ex GST income. Purchase costs are only the figures you enter above. This tool does not include detailed borrower financial assessment, valuation outcomes, entity-specific transfer-duty advice or lease-specific credit policy.
Assumptions (how lenders read these numbers)
In commercial lending, the two most common constraints are cashflow / support and LVR (security). For an investment property that support may be tenant rent. For an owner-occupied property it is often the business or owners’ ability to contribute to the loan.
Debt Service Coverage Ratio compares annual net operating income with the full annual loan bill. A DSCR of 1.50× means the property is generating 50% more net income than the annual principal-and-interest debt bill.
Interest Coverage Ratio compares annual net operating income with annual interest only. Some lease-doc lenders use ICR because it focuses on whether the rent comfortably covers the interest bill.
Net Operating Income is the rent left after vacancy / downtime allowance and any outgoings the owner cannot recover from the tenant. It is the core income figure behind yield, DSCR, ICR and cap-rate value.
Loan-to-Value Ratio compares the loan to the property value. Lower LVR means more equity and usually less lender risk. Max LVR varies by asset quality, lease profile, location and lender policy.
Capitalisation rate is the income return investors use to value a commercial asset. In simple terms, value ≈ annual NOI ÷ cap rate. Lower cap rate usually means a higher value; higher cap rate usually means a lower value.
For deeper explanations (covenants, WALE, valuation process, timelines), see the Commercial Property Finance Guide. For market context (cap rates, vacancies and lender sentiment), see Commercial Property Market Australia 2025.
Next steps
If you’re close to policy limits, it’s usually faster to confirm lender fit early than to rework after valuation or credit questions.
Key lender tests (quick deep dives)
Want the plain-English mechanics behind approvals? These pages go deeper on what lenders test.
FAQs
How accurate is this commercial property calculator?
It is an indicative modelling tool. Commercial approvals depend on lender policy, valuation outcomes, borrower financials, lease terms, and how the lender stresses income and interest rates. Use it to understand sensitivity and get a practical starting point.
How does this work for owner-occupied commercial property?
Owner-occupied deals are often assessed on business cash flow, not just tenant rent. This calculator lets you enter borrower or business support as a simple stand-in, but a real lender will usually want to review business financials, tax returns and bank statements as well.
What interest rate and expenses should I assume?
Start with your actual rate, then test a separate stress buffer. Commercial lenders do not use one universal Australia-wide assessment buffer, so it is safer to model sensitivity. Include a vacancy / downtime allowance and any outgoings the owner actually wears.
What is DSCR and why does it matter?
DSCR (Debt Service Coverage Ratio) compares the annual support available for the loan with the full annual debt bill. That support may be tenant rent, borrower / business support, or a mix of both. A higher DSCR generally improves approval confidence.
What costs does this calculator include?
It can add the purchase costs you enter, such as transfer duty, legal / conveyancing, valuation and lender / settlement fees. Those inputs are optional because commercial purchase costs vary a lot by state, property type, entity and lender.
Why can the cashflow limit differ from the LVR limit?
The cashflow limit asks whether the annual support available can cover the debt bill. The LVR limit asks whether the loan still fits inside the allowed percentage of the property value. Many lenders use the lower of the two as an indicative maximum.
What if the calculator shows my maximum loan is low?
Common options include: reducing the loan, increasing your deposit, improving rent or other support, changing the repayment structure, or choosing a lender tier better suited to your asset and lease profile. A broker can help identify which constraint is actually biting before you apply.
Can you help me choose the right lender based on my results?
Yes. If you share your asset type, location, lease profile, borrower background and financials, a broker can compare policies across lenders, package the deal correctly, and reduce valuation and credit surprises.
Speak with a Commercial Mortgage Broker or call 0407 908 024.
This page provides general information and does not consider your objectives or circumstances. Always confirm legal and tax details with qualified professionals.