CRE Debt Capital Markets Pure Edge Computation

Commercial Mortgage Refinance Debt Service & Break-Even Calculator

Evaluate commercial real estate loan refinancing feasibility by balancing interest rate compression and amortization resets against prepayment penalties and title/closing friction.

Formula: Monthly Savings = Debt Service_old - Debt Service_new; Break-Even Months = Total Friction / Monthly Savings

Model Parameters

Current Outstanding Principal Balance ($)

Existing loan principal unpaid balance.

Current Note Interest Rate

Current annual interest rate on the existing note.

Current Remaining Term (Months)

months

Remaining amortization period on existing loan.

Proposed Refinanced Loan Amount ($)

Total principal amount under the new mortgage commitment.

Proposed New Interest Rate

Offered annual note rate on the new commercial financing.

New Amortization Schedule (Months)

months

Total amortization schedule under new note (e.g. 240, 300, or 360 months).

Title, Appraisal & Origination Closing Costs ($)

Total lender points, title insurance, third-party reports, and legal closing fees.

Existing Loan Prepayment Penalty

Step-down prepayment penalty percentage applied to existing principal upon early payoff.

Outputs & Underwriting Summary

Calculation Status

COMMERCIAL REFINANCE VIABLE: ECONOMIC BENEFIT

Verified Model

Monthly Debt Service Savings

$3529.73 / mo

Annual Debt Service Delta: $42356.76/yr

Refinancing Break-Even Horizon

19.8 months

Total Friction Costs: $70000.00 (Prepayment: $40000.00)

Amortization & Debt Service Comparison

$12582.13 new vs $16111.86 current

Status: COMMERCIAL REFINANCE VIABLE: ECONOMIC BENEFIT | Note Rate: 5.75% (from 7.5%)

Refinancing from 7.5% to 5.75% reduces monthly debt service by $3,529.73/mo ($42,356.76/yr). With $70,000.00 in total friction costs (including $40,000.00 prepayment penalty), the capital recovery break-even horizon is 19.8 months.

Income Canvas Computational & Analytical Suite

Commercial Loans & Mortgage

Debt Service Coverage Ratio (DSCR) Commercial Loan Calculator

Evaluate commercial mortgage underwriting viability. Institutional lenders enforce a minimum 1.20x to 1.30x DSCR threshold to protect debt service against occupancy fluctuations.

Corporate Finance & Treasury

Section 179 & Bonus Depreciation Tax Shield Calculator

Determine after-tax capital expenditure net outlays under IRC Section 179 and Section 168(k) bonus depreciation phase-downs.

Insurance Underwriting

Workers' Compensation Experience Modification Rate (EMR) Calculator

Model the financial impact of workplace safety and claims history on statutory workers' compensation premiums.