Free calculator
Maturity wall refinance gap calculator
A loan coming due does not refinance at the balance it started with — it refinances at whatever the property supports today. This calculator derives the implied value from the income and a cap rate, sizes the new loan on both the coverage test and the leverage cap, takes the lower answer, and reports the equity you would have to bring to retire the maturing balance.
- 20,000+loan programs screened
- 5–8matches on a typical deal
- under an hourto the median first offer
- Zero upfrontto submit and compare offers
How is a refinance gap calculated?
Implied value = NOI ÷ Cap rate
Coverage leg = (NOI ÷ Coverage target) ÷ Refinance rate
Leverage leg = Implied value × LTV cap
Equity gap = Maturing balance − lesser leg
What does the gap look like on a real deal?
| Input | Value |
|---|---|
| Maturing loan balance | $10,000,000 |
| Net operating income | $750,000 |
| Market cap rate | 7.00% |
| Refinance rate | 7.50% |
| Coverage target | 1.25x |
| LTV cap | 65.00% |
- Implied value: $750,000 ÷ 7.00% = $10,714,286.
- Coverage leg, interest-only: ($750,000 ÷ 1.25) ÷ 7.50% = $8,000,000.
- Leverage leg: $10,714,286 × 65% = $6,964,286.
- The lower leg governs, so the property supports $6,964,286 today.
- Equity gap: $10,000,000 − $6,964,286 = $3,035,714.
Equity gap$3,035,714
The leverage cap governs, so the appraisal is the negotiation: about $3.0M has to come from somewhere — a paydown, new equity, a bridge loan, or a sale — before this loan can be retired.
How do you read the result?
Read the two legs against each other before reading the gap. When the coverage leg is the lower one, the payment is the problem and a longer amortization or a lower rate moves the answer. When the leverage leg is lower, the appraisal is the problem and only more income or a higher value does.
A gap is a financing question, not a verdict. The usual answers are a paydown from reserves, fresh equity from a partner, a bridge loan that buys time for income to catch up, or a sale — and every one of them is priced differently by different lenders, which is the argument for putting the same numbers in front of several at once rather than renewing with the incumbent by default.
Why is the new loan smaller than the one maturing?
Two things moved since the original loan closed. The refinance rate shrinks the loan a given income can cover, and the cap rate shrinks the value a leverage cap is applied to. The calculator separates the two effects so you can see which one is doing the damage, because the remedy is different for each.
Does this size the coverage leg on an amortizing payment?
No — interest-only, which is the simplest defensible version of the test and slightly generous to the borrower. An amortizing payment carries more debt service per dollar, so it would size the coverage leg lower. Treat the figure here as an upper bound and run the loan sizing calculator alongside it if your lender quotes an amortizing constant.
What happens after you have the number?
A ratio tells you where the deal stands; it does not tell you which lender will like it. You describe the deal once — about five minutes — and it is screened against 20,000+ loan programs. Most deals return 5–8 matches, the median first offer arrives in under an hour, and there is Zero upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
Frequently Asked Questions
What is the maturity wall?
The concentration of commercial loans reaching their maturity date in the same stretch of years, at rates and values different from the ones they were underwritten at. For any single borrower it is a simpler question: does the property still support the balance that is coming due?
Which test usually governs?
When rates are high the coverage test tends to bind; when values have fallen the leverage cap tends to bind. The calculator names the governing leg on every run, and that is the figure worth bringing to a conversation about a bridge loan, a paydown or a sale.
What do I do about a gap?
Close it with a paydown or new equity, bridge it while income catches up, or sell. Which is cheapest depends on terms only a lender can quote, so the useful next step is putting the deal in front of several at once.
Is the implied value an appraisal?
No. It is your income divided by the cap rate you entered. An appraiser will use their own normalised income and their own rate, and a difference between the two shows up as a smaller loan, so it is worth knowing early.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Where does YieldStack operate?
Nationwide. YieldStack arranges commercial real estate financing nationwide. Every deal is business-purpose commercial financing, and the broker fee is paid only at closing.
You have the number.Now get the quotes.
YieldStack is a commercial mortgage brokerage, not a lender.