Commercial Property Calculator Australia
Estimate repayments, net income (NOI), net yield, DSCR and an indicative maximum loan using both DSCR (cashflow) and LVR (security).
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
Enter your rent and a conservative allowance. Add a value if you want yield and LVR modelling. Loan amount is optional — it’s only needed for “your scenario” repayments and DSCR today.
1) Loan settings (optional)
Many lenders also stress-test serviceability. Use realistic inputs and keep buffers.
2) Rent / lease
Choose how rent is quoted, then apply a vacancy/leasing allowance to estimate NOI.
3) Value / LVR (optional)
Add a value if you want net yield, LVR and an LVR-based max loan limit.
Your results
Monthly rent i
NOI / month i
Net yield i
Value (from cap rate) i
Monthly repayment i
LVR (your loan) i
DSCR (today) i
DSCR (stressed) i
Max loan (by DSCR) i
Max loan (by LVR) i
Max loan (DSCR & LVR) i
Breakeven rate i
Indicative only. NOI and DSCR are calculated using ex GST figures. This tool does not include lender fees, valuation outcomes, borrower financial review, or lease-specific credit policy.
Assumptions (how lenders read these numbers)
In commercial lending, the two most common constraints are DSCR (cashflow) and LVR (security). Lease quality (WALE, tenant strength, options and rent reviews) influences both.
Debt Service Coverage Ratio = NOI ÷ annual debt service. Many lenders stress-test DSCR using higher assessment rates and/or income haircuts.
Net Operating Income is income after realistic vacancy/leasing allowances and non-recoverable outgoings (ex GST). It drives yield, DSCR and cap-rate value.
Loan-to-Value Ratio = loan ÷ value. Max LVR varies by property type, lease profile, location, and borrower strength.
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’s 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 starting point.
What interest rate and expenses should I assume?
Start with a conservative interest rate and include a vacancy/leasing allowance (often 10–20% depending on the asset). If you pay any outgoings that aren’t recoverable from the tenant, include those too.
What is DSCR and why does it matter?
DSCR (Debt Service Coverage Ratio) compares NOI to annual debt service. Many lenders have a minimum DSCR and may assess at a stressed interest rate. A higher DSCR generally improves approval confidence.
What LVR can I expect for a commercial property loan?
It depends on property type, lease quality (WALE, tenant strength), location liquidity, and borrower strength. Many standard deals sit around 65–75% maximum LVR, but policy varies widely by lender and scenario.
What if the calculator shows my maximum loan is low?
Common options include: increasing your deposit (lower LVR), improving NOI (higher rent or lower costs), adjusting structure (term or IO), or selecting a lender tier better suited to your asset and lease profile. A broker can help identify which constraint is real before you apply.
Why can “Max loan by DSCR” differ from “Max loan by LVR”?
DSCR is a cashflow limit (income must cover repayments). LVR is a security limit (loan must be within a % of value). Many lenders use the lower of the two as an indicative maximum.
Does this calculator include fees and valuation impacts?
No. It doesn’t include lender fees, valuation variance, borrower financial review, lease-specific credit policy, or covenants. Use it for indicative modelling and then confirm the real lending position with a broker.
Can you help me choose the right lender based on my results?
Yes. If you share your asset type, location, lease profile (WALE), and financials, a broker can compare policies across lenders, package the deal correctly, and reduce valuation and credit surprises. Start here: Commercial Mortgage Broker.
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.