Loan Constant Calculator
Enter the loan amount, annual rate, and term in months to find the loan constant.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
The loan constant (also called the mortgage constant) is a commercial real estate and finance metric equal to the total annual debt service (all twelve months of principal-plus-interest payments) divided by the original loan amount, expressed as a percentage. Unlike the interest rate alone, it captures the full annual cash outflow required to service the debt, including principal amortization.
Real estate investors compare the loan constant to a property's capitalization rate (cap rate) to judge whether financing improves or hurts cash flow: if the cap rate exceeds the loan constant, leverage is generally accretive to returns ("positive leverage"); if the loan constant is higher, borrowing works against the investor. This calculator takes your loan amount, annual interest rate, and term in months and returns the loan constant as a percentage.
Was this helpful?
Popular calculators
Loan Calculator
Monthly payment, total interest and full amortization schedule.
Percentage Calculator
Percent change, percent of, and ratio calculations.
Discount Calculator
Calculate final price, savings, and discount amount.
BMI Calculator
Body mass index from height and weight (metric or imperial).
Age Calculator
Compute your exact age in years, months and days from a birth date.
Compound Interest Calculator
Calculate the final amount and interest earned with compounding.
All Calculators
No calculators found
Comments (0)