The property
The loan
Operating costs
Over the hold
Enter the price and monthly rent, then click Calculate DSCR.
Result
If the interest rate were different
| Rate | Monthly P&I | DSCR (rent / PITIA) | DSCR (NOI) | Yearly cash flow |
|---|
Largest loan at your target DSCR
| Definition | Largest loan |
|---|
Year by year
| Year | NOI | Debt service | Cash flow | Cumulative cash |
|---|
How it is calculated
Gross income = (rent + other income) x 12; effective income subtracts vacancy. Operating costs = property management and maintenance as a share of effective income, plus the yearly tax, insurance, HOA and utilities you enter. NOI = effective income minus operating costs. Debt service is the level payment on the loan (price less down payment) at your rate and term, or interest only if you say so. DSCR (rent / PITIA) = scheduled gross rent over debt service plus tax, insurance and HOA; DSCR (NOI) = NOI over debt service. Cash-on-cash = year-1 cash flow over down payment, closing costs and rehab. Break-even occupancy is the occupancy at which NOI equals debt service. The year table grows rent and costs at your rates, sells at the end at the appreciated price less selling costs and the remaining loan, and reports the IRR of the cash flows.
Not modelled: income tax, depreciation, entity structure, lender fees and points, prepayment penalties, rate resets after an interest-only period, refinancing, capital expenditures beyond the reserve you enter, rent control and lender-specific rules such as reserves, credit score or minimum rent. Unverified: checked by hand calculation and unit tests only. Use the terms on your own loan estimate.
Common questions
What is a good DSCR for a rental property?
Lenders set their own minimum. Many DSCR loans ask for about 1.0 to 1.25 and price the loan better at higher coverage; conventional lenders reading NOI often want 1.20 or more. Confirm your lender's number, then use this tool's target field to see the largest loan that clears it.
How is DSCR calculated on a rental property?
Two definitions are common. Lender-style DSCR divides scheduled gross rent by the monthly principal, interest, taxes, insurance and HOA (PITIA). The NOI definition divides net operating income, after vacancy and operating costs, by debt service alone. This tool shows both because they can differ a lot.
What is a DSCR loan?
A loan underwritten mainly on the property's rent rather than the borrower's personal income. Terms, minimum ratios and documentation differ by lender, and this tool does not know any lender's rules; it shows the ratio so you can compare it with the number you are quoted.
What is cash-on-cash return?
Year-1 cash flow after debt service divided by the cash you put in: down payment, closing costs and rehab. It ignores appreciation and loan paydown, which the hold-period IRR here includes.
What is break-even occupancy?
The occupancy at which net operating income just covers debt service. The closer it is to 100 percent, the less room a vacancy or a repair leaves.
How does the interest rate change my DSCR?
The rate sets the payment. The table re-runs your deal from one point below your rate to three points above so you can see how much coverage a higher quote costs.
Does this include taxes on the income or depreciation?
No. Income tax, depreciation, the mortgage interest deduction and entity structure are not modelled. Property tax and insurance are the yearly dollar amounts you enter.
Is my information uploaded anywhere?
No. Everything you type stays in this browser tab. There are no accounts, cookies or analytics vendors.