FREE DEBT CALCULATOR
Loan Constant Calculator
Express annual debt service as a percentage of original loan principal.
INDICATIVE RESULT
6.75%Annual debt service€675,000
Monthly equivalent€56,250
Calculated directly from the assumptions shown.
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How the loan constant calculation works
Loan constant = annual debt service ÷ original loan amount.
Example calculation
€675k of annual debt service on a €10m loan equals a 6.75% loan constant.
INVESTMENT USE
How professionals use the result
Use the loan constant to translate a DSCR constraint into loan capacity and compare amortizing structures.
Common mistakes
- Using current balance instead of original principal without labeling it
- Using interest only instead of total debt service
- Mixing monthly and annual payments
- Ignoring fees
CLEAR ANSWERS