Free tool for lenders
CRE loan sizing calculator
Two questions in one tool. How much loan and value does the income support? And for a requested loan, what appraised value and income does it need? Change any input and every result updates.
CRE Loan Sizing Summary
For the requested loan
Important: this is a calculation, not an appraisal
This summary is an illustrative calculation produced by a free online tool from the inputs entered by its user. It is not an appraisal, appraisal review, evaluation, or opinion of value under USPAP, FIRREA, or the Interagency Appraisal and Evaluation Guidelines, and it may not be used as one. ARC Appraisers LLC has not inspected, analyzed, or valued any property, has not verified the inputs, and no appraiser-client relationship is created. Cap rate medians are market data from ARC's sales database, not a cap rate opinion for any property. This is not credit approval, lending advice, or investment advice. Each lender's own credit policy governs. Do not rely on this summary for a lending decision.
How it works
The math behind each result
Standard commercial underwriting. Every input is optional; each result shows once its inputs are filled in.
How is the supportable loan sized?
Three tests. Coverage: NOI divided by the minimum DSCR, divided by the annual debt constant for the rate and amortization. Loan to value: appraised value times maximum LTV. Debt yield: NOI divided by the minimum debt yield. The supportable loan is the smallest of the three, and the tool names the one that binds.
What is debt-supported value?
The loan the income can carry at the minimum DSCR, divided by the maximum LTV. It is the value the debt market will finance today. When the appraised value is well above it, the loan will not size to the appraisal.
What appraised value does a requested loan need?
The requested loan divided by the maximum LTV. The tool also shows the NOI the loan needs to meet the minimum DSCR and debt yield, so a loan officer can check a request before ordering an appraisal.
Where do the cap rates come from?
Medians from ARC's database of closed commercial sales, mostly in the Southeast, as published in the October 2026 outlook. They are market data, not a cap rate opinion for any property.