+ Reply to Thread
Results 1 to 2 of 2

Debt Service Test - Payment Known, how do I find Principal Balance?

Hybrid View

sabunabu Debt Service Test - Payment... 06-19-2012, 11:50 AM
sabunabu Re: Debt Service Test -... 06-20-2012, 01:50 PM
  1. #1
    Forum Contributor
    Join Date
    12-06-2005
    Posts
    118

    Debt Service Test - Payment Known, how do I find Principal Balance?

    I am trying to find out how much principal I would be required to pay down to meet a DSCR test. So, if I know my NOI is $1M and my required coverage is 1.10x, then I have a total payment (P&I) of $909,090. How can I solve for the principal balance that would give me a total payment of $909k during that period?

    My test is based on 7% P&I and 360 months. I know I can use Solver but what if my NOI changes or if I want to run sensitivities. Is there a formula?

  2. #2
    Forum Contributor
    Join Date
    12-06-2005
    Posts
    118

    Re: Debt Service Test - Payment Known, how do I find Principal Balance?

    I solved my own problem. It can be done by first finding the debt constant, then the desired debt service, then divided the desired debt service by the constant. That's your paydown.

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Search Engine Friendly URLs by vBSEO 3.6.0 RC 1