Commercial Refinance Gap Stress Test
Estimate a refinancing funding gap from your payoff and lending assumptions. Compare LTV, debt-service coverage and debt-yield constraints.
Free to use. No email required. Public datasets retain their reporting dates; calculations use your assumptions. Prepared September 12, 2026. Open the tool or report ↓
Test the funding gap at maturity
All starting inputs are illustrative, not market quotes or lender terms. Calculations run in your browser; this tool does not upload or save your entries or send entered financial values to analytics. Use figures from your own loan documents and operating statements.
Illustrative refinance scenario
- Additional cash needed
- $625,000
- Net proceeds after closing costs
- $4,875,000
- Gross modeled loan proceeds
- $5,000,000
- NOI ÷ cap rate scenario value
- $7,692,308
- Total modeled closing costs
- $125,000
- Modeled proceeds above payoff
- $0
Binding constraint: LTV. LTV limit: $5,000,000; DSCR limit: $5,273,694; debt-yield limit: $5,555,556. Annual debt constant: 7.58%. No lender commitment or approval is implied.
27 combinations of NOI, cap rate and interest rate
NOI falls 0%, 5% or 10%; the cap rate and interest rate each rise 0, 0.5 or 1 percentage point. These are sensitivity increments, not forecasts. Other assumptions stay fixed.
| NOI change | Cap +pp | Rate +pp | Gross proceeds | Cash needed | Constraint |
|---|---|---|---|---|---|
| 0% | 0.0 | 0.0 | $5,000,000 | $625,000 | LTV |
| 0% | 0.0 | 0.5 | $5,000,000 | $625,000 | LTV |
| 0% | 0.0 | 1.0 | $4,767,254 | $853,091 | DSCR |
| 0% | 0.5 | 0.0 | $4,642,857 | $975,000 | LTV |
| 0% | 0.5 | 0.5 | $4,642,857 | $975,000 | LTV |
| 0% | 0.5 | 1.0 | $4,642,857 | $975,000 | LTV |
| 0% | 1.0 | 0.0 | $4,333,333 | $1,278,333 | LTV |
| 0% | 1.0 | 0.5 | $4,333,333 | $1,278,333 | LTV |
| 0% | 1.0 | 1.0 | $4,333,333 | $1,278,333 | LTV |
| -5% | 0.0 | 0.0 | $4,750,000 | $870,000 | LTV |
| -5% | 0.0 | 0.5 | $4,750,000 | $870,000 | LTV |
| -5% | 0.0 | 1.0 | $4,528,892 | $1,086,686 | DSCR |
| -5% | 0.5 | 0.0 | $4,410,714 | $1,202,500 | LTV |
| -5% | 0.5 | 0.5 | $4,410,714 | $1,202,500 | LTV |
| -5% | 0.5 | 1.0 | $4,410,714 | $1,202,500 | LTV |
| -5% | 1.0 | 0.0 | $4,116,667 | $1,490,667 | LTV |
| -5% | 1.0 | 0.5 | $4,116,667 | $1,490,667 | LTV |
| -5% | 1.0 | 1.0 | $4,116,667 | $1,490,667 | LTV |
| -10% | 0.0 | 0.0 | $4,500,000 | $1,115,000 | LTV |
| -10% | 0.0 | 0.5 | $4,500,000 | $1,115,000 | LTV |
| -10% | 0.0 | 1.0 | $4,290,529 | $1,320,282 | DSCR |
| -10% | 0.5 | 0.0 | $4,178,571 | $1,430,000 | LTV |
| -10% | 0.5 | 0.5 | $4,178,571 | $1,430,000 | LTV |
| -10% | 0.5 | 1.0 | $4,178,571 | $1,430,000 | LTV |
| -10% | 1.0 | 0.0 | $3,900,000 | $1,703,000 | LTV |
| -10% | 1.0 | 0.5 | $3,900,000 | $1,703,000 | LTV |
| -10% | 1.0 | 1.0 | $3,900,000 | $1,703,000 | LTV |
How the refinance gap is calculated
Scenario value equals annual NOI divided by the entered cap rate. The LTV limit equals that value times maximum LTV. The DSCR limit equals NOI divided by target DSCR and the annual debt constant. Debt constant is twelve monthly payments on one dollar of principal; the debt-yield limit equals NOI divided by minimum debt yield. Gross proceeds are the smallest of those three limits.
Net proceeds equal gross proceeds minus percentage costs on that gross amount and additional fixed costs. Additional cash needed is the positive difference between your entered payoff and net proceeds. Negative net proceeds are retained when closing costs exceed the loan, so the cash requirement is not understated. At zero-rate interest-only terms, the DSCR constraint is unconstrained; LTV and debt yield still apply.
A worked example
With $100,000 annual NOI, a 10% cap rate, 70% LTV, 1.25× DSCR, 10% debt yield and an illustrative zero-rate loan amortizing over 120 months, the three loan limits are $700,000, $800,000 and $1,000,000. A 2% fee plus $10,000 fixed costs leaves $676,000. Against a $750,000 payoff, the modeled cash requirement is $74,000.
What a maturity record cannot tell you
A recorded original loan amount is not a verified payoff. Confirm amendments, extensions, repayments, senior and subordinate liens, defeasance or prepayment costs, escrows and accrued interest directly. This arithmetic does not obtain a property appraisal, forecast rents, establish lending eligibility or infer owner distress. Real underwriting may use different NOI adjustments, reserves, amortization, recourse and collateral tests. ACREN’s property research does not supply automated NOI or valuations to this tool.
Primary background: OCC Comptroller’s Handbook: Commercial Real Estate Lending (version 2.0, March 2022; verified September 12, 2026), discussing cash flow, debt service, collateral and refinance risk. The illustrative inputs and scenario increments here are ACREN educational assumptions, not OCC recommendations.
How Acren helps
Put your refinancing assumptions in context
Acren helps you review available property facts and recorded mortgage history before building a refinancing scenario. Keep the original record dates beside your assumptions, then use this tool to test how changes in income, rates and lender constraints affect the funding gap.
Enter verified assumptions yourself. Acren does not supply current NOI, lender terms or payoff quotes to this calculator.
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