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DSCR calculator for rental property loans.
Work out whether a rental covers its own mortgage before you speak to anyone. Enter the property value, the rent and your loan amount, and you’ll get the debt service coverage ratio a lender would calculate, along with the largest loan the rent supports at three different ratios.
We fund down to 0.75, so a property that doesn’t cover itself isn’t automatically a no.
DSCR calculator
Run the only number that decides it.
Rent divided by the payment. We fund down to a 0.75 ratio, so a negative cash flow property is a conversation, not a decline.
Market rates vary as low as 5.99% to 8.99%+*
Vacancy, repairs and property management are real costs, but they are not counted against DSCR. Underwriting weighs rent against principal, interest, taxes, insurance and HOA only.
- Loan amount
- $337,500
- Loan to value
- 75%
- Estimated cash out*
- $47,500
- Principal & interest
- $2,243/mo
- Total PITIA
- $2,844/mo
- Cash flow after payment
- $556/mo
- Max loan at 0.75 DSCR
- $591,657
- Max loan at 1.00 DSCR
- $421,136
- Max loan at 1.25 DSCR
- $318,824
*Estimated figures. They do not include closing costs, prepaids, escrows, or lender fees. See disclaimer.
Takes you to the form with your figures already filled in.
*Rates vary depending on LTV, FICO, property type, prepayment penalty and other factors. Estimated figures do not include closing costs, prepaids, escrows or lender fees. This calculator covers business-purpose investment property loans only; it does not apply to home equity lines of credit.
5.99% example: prices on a rate-and-term transaction at 800 FICO, 60% LTV, a $450,000 loan amount, single-family residence, DSCR 1.50 or better, 5-year fixed with a 5% prepayment penalty, and 3.5% points. Your rate depends on your own file.
Disclaimer: This Proposal is non-binding and is NOT a Loan Estimate as defined by the TILA-RESPA Integrated Disclosure Rule, or a binding estimate or any other state or federal rule or regulation. This Proposal is provided for informational purposes only. It is meant to provide potential borrowers with an estimate of the cash that may be required to close and an estimate of potential monthly mortgage payments. Actual charges may differ from this Proposal.
Reading the number
What the calculator is doing.
- 01
What the ratio actually measures
DSCR is the rent a property collects divided by the payment it would carry — principal, interest, taxes, insurance and HOA. At 1.00 the rent covers the payment exactly. At 1.25 there's a 25% cushion. At 0.85 the property runs short by 15% and you're covering the gap from elsewhere, which is still fundable on the right program.
- 02
Why vacancy and repairs aren't in it
They're real costs and you should budget for them, but underwriting doesn't count them against the ratio. This is the single most common reason an investor talks themselves out of a deal that would have funded — the number on your own spreadsheet is lower than the number the lender uses.
- 03
Where the qualifying rent comes from
If the property is leased, the lease. If it's vacant or you're still buying, the appraiser completes a rent schedule estimating market rent, and that figure qualifies the loan. You don't need a signed tenant to get financing.
- 04
What moves the ratio when it's short
Three levers, in order of how much they usually help: more money down, which cuts the payment; a lower rate, often bought with points; or an interest-only period where the program allows it. Raising rent is the slowest of the four and the one people reach for first.
Run it past someone.
A calculator can tell you the ratio. It can’t tell you which lender will take the file, what the rate does at your credit tier, or whether the appraiser’s rent schedule will come in where you expect.