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DSCR calculator.
Gross rent over the full payment, which is the test a rental loan is actually underwritten against. No tax returns and no employment history enter into it.
Ratio is gross rent divided by PITIA, the standard test for one to four unit rentals. Most programs price best at 1.25 and hold a floor at 1.00. The rate and term here are yours to set.
Debt service coverage
Qualifies, but expect a rate adjustment below 1.25. Holding the ratio at 1.25 caps the loan around $169,311.
Get terms on this deal
This sends the numbers above straight to me. You get a written term sheet inside 24 to 48 hours, and a straight answer if it does not work.
How to read it
What the number means.
The debt service coverage ratio is gross rent divided by the full monthly payment: principal, interest, taxes, insurance and any association dues. It is the standard test for one to four unit rentals and it is the entire qualification. Your income, your job and your tax returns do not appear in it, which is the whole reason the instrument exists.
Most programs price best at a comfortable margin above break even and hold a floor at break even itself. Below the floor the property does not service its own debt, and above it the pricing improves as the cushion grows.
The number to be careful with is the rent. A lender will use a market rent from an appraisal rather than the rent you hope to achieve, and a model built on the optimistic one will qualify a deal that does not.
Questions
About the arithmetic.
What DSCR do I need?
It depends on the program, but the pattern is consistent: there is a floor around break even, and pricing improves as you clear it by more. A ratio comfortably above the floor is worth more than one that scrapes it.
Does the ratio use gross or net rent?
Gross rent, against the full payment including taxes, insurance and dues. Vacancy, management and repairs are not in the lender's test, which is exactly why they need to be in yours.
What if the property is vacant?
Then a market rent from the appraisal is used rather than an actual one. That number is the one that matters, so it is worth knowing before you buy.
Do you check my income for a DSCR loan?
No tax returns, no W2s and no employment history. The property qualifies on its own income, which is the point of the instrument.
Method
Where these numbers come from.
DSCR loan requirements: how the ratio works and what it has to hit
A DSCR loan qualifies the property, not you. Here is how the ratio is calculated, the number it needs to clear, and how to fix a file that misses.
DSCR loan or conventional: which one fits the deal
Two ways to hold a rental long term. One underwrites the property, the other underwrites you. The right answer depends on facts you can check today.
BRRRR seasoning: how long before you can refinance at the new value
Seasoning is the rule that decides whether you get your capital back in month four or month twelve. Confirm it before you buy, not after the rehab is done.
Other tools
The rest of them.
Hard money loan calculator, Fix and flip calculator, ARV calculator, BRRRR calculator, Rehab cost calculator, Construction loan calculator, Rental portfolio calculator, Transactional funding calculator.
This is an estimating tool. It runs arithmetic on the figures you enter using the assumptions stated above, and changing an assumption changes the answer. The result is not a quote, an approval, an appraisal, a valuation, or a prediction of what a property will sell for, and it does not commit anyone to lend. Costs, taxes and market conditions vary by location and change over time. Check the numbers that matter against your own contractor, agent and professional advisers before you commit to a deal.
When the numbers work
Get it priced.
A calculator cannot see your property. Send the deal and you get written terms in 24 to 48 hours, with no credit pull to get a number.