BUILD RENTAL WEALTH DSCR CALCULATOR

RUN THE NUMBERS. SEE THE DEAL.

Purchase price. Down payment. Rate. Taxes. Insurance. HOA. Rent. Put the deal together and see the estimated DSCR relationship in seconds.

START ANALYZING ↓ HOW DOES DSCR WORK? →
PROPERTY + FINANCING + RENT = YOUR DSCR
YOUR DEAL. YOUR NUMBERS.

LET’S SEE WHAT THE PROPERTY LOOKS LIKE.

Enter the basic property and financing assumptions below. Your estimated payment, PITIA and DSCR will update automatically.

ENTER YOUR DEAL PROPERTY + FINANCING
$
%
%
$
$
$
$
Use a reasonable preliminary rent estimate. Final qualifying rent may differ based on the applicable lender and program.
YOUR RENTAL SNAPSHOT LIVE ESTIMATE
PURCHASE PRICE $350,000
DOWN PAYMENT $87,500
LOAN AMOUNT $262,500
PRINCIPAL + INTEREST $1,791
TAXES $420
INSURANCE $175
HOA $0
ESTIMATED PITIA $2,386 / MONTH
ESTIMATED DSCR 1.34
RENT EXCEEDS ESTIMATED HOUSING EXPENSE
RENT MINUS ESTIMATED PITIA +$814 / MO This is not an estimate of net investment cash flow.
WHAT THIS MEANS

In this estimate, expected monthly rent is approximately 34% greater than the estimated housing expense.

GET QUALIFIED → UNDERSTAND MY RESULT →
EDUCATIONAL ESTIMATE ONLY.

This calculator is intended to illustrate a basic DSCR relationship. Actual qualifying rent, PITIA, interest rate, loan structure, minimum DSCR, leverage, credit requirements and underwriting methodology vary by lender and program. Calculator results are not an approval, loan offer or commitment to lend.

PLAY WITH THE DEAL

HOW CAN I IMPROVE THIS DEAL?

DSCR isn’t some mysterious number. Change the assumptions and you can see which parts of the deal have the biggest effect on the estimated ratio.

DEAL LAB MOVE THE NUMBERS
DOWN PAYMENT A larger down payment lowers the estimated loan amount.
25%
10% 50%
EXPECTED MONTHLY RENT Higher qualifying rent increases the estimated DSCR.
$3,200
$1,000 $10,000
INTEREST RATE A lower assumed rate can reduce the estimated payment.
7.25%
4.00% 12.00%
LIVE ESTIMATE

YOUR UPDATED DSCR

1.34
RENT EXCEEDS ESTIMATED HOUSING EXPENSE
LOAN AMOUNT $262,500
PITIA $2,386
RENT $3,200
THE LESSON

The ratio moves because the deal moves. Price, financing structure, qualifying rent and applicable housing expenses can all affect the result.

SEE WHAT FINANCING MAY FIT →
01

MORE EQUITY

More money down generally means a smaller loan amount, which can reduce the estimated monthly payment.

02

STRONGER RENT

A higher qualifying rent can improve the relationship between income and qualifying housing expense.

03

LOWER PAYMENT

Rate, loan amount and eligible loan structure can affect the estimated qualifying payment.

DON’T “FIX” A DEAL BY INVENTING BETTER NUMBERS.

Use realistic assumptions. Final qualifying rent, interest rate, expenses, loan structure and program requirements must be supported by the actual financing scenario.

READ THE RESULT

WHAT DOES MY DSCR RESULT MEAN?

The ratio helps you understand how qualifying rental income compares with the estimated housing expense used in the calculation. Think of it as a coverage measurement — not an approval button.

< 1.00 BELOW EXPENSE

RENT IS BELOW THE ESTIMATED HOUSING EXPENSE.

In the simplified calculation, the expected monthly rent is lower than the estimated PITIA used to calculate the ratio.

EXAMPLE
$2,200 RENT
÷
$2,500 PITIA
=
0.88 DSCR
1.00 EVEN COVERAGE

RENT APPROXIMATELY EQUALS THE ESTIMATED HOUSING EXPENSE.

In the simplified calculation, expected monthly rent and estimated PITIA are approximately equal.

EXAMPLE
$2,500 RENT
÷
$2,500 PITIA
=
1.00 DSCR
> 1.00 ABOVE EXPENSE

RENT IS ABOVE THE ESTIMATED HOUSING EXPENSE.

In the simplified calculation, expected monthly rent is greater than the estimated PITIA used to calculate the ratio.

EXAMPLE
$3,200 RENT
÷
$2,500 PITIA
=
1.28 DSCR
HERE’S THE PART THAT MATTERS

A HIGHER DSCR CAN SHOW MORE RENTAL-INCOME COVERAGE.

But there is no universal DSCR number that automatically means approved or denied. Minimum ratios, leverage, pricing and other requirements can vary by lender, property and program.

LEARN HOW DSCR UNDERWRITING WORKS →
KNOW THE DIFFERENCE

THE CALCULATOR DOES THE MATH.

THE LENDER DOES THE UNDERWRITING.

Your calculator result is a useful estimate. Actual financing requires a review of the complete property and borrower scenario.

THE CALCULATOR LOOKS AT

THE NUMBERS.

PURCHASE PRICE DOWN PAYMENT LOAN AMOUNT INTEREST RATE ESTIMATED PAYMENT PROPERTY TAXES INSURANCE HOA EXPECTED RENT ESTIMATED DSCR
ACTUAL UNDERWRITING MAY ALSO LOOK AT

THE WHOLE DEAL.

CREDIT PROFILE PROPERTY ELIGIBILITY APPRAISED VALUE QUALIFYING RENT LEVERAGE / EQUITY RESERVES PROPERTY TYPE BORROWER / ENTITY STRUCTURE DOCUMENTATION PROGRAM GUIDELINES
CALCULATOR ESTIMATE
→
UNDERWRITING ACTUAL FINANCING DECISION
THIS IS IMPORTANT

A 1.30 ON A CALCULATOR ISN’T A LOAN APPROVAL.

It’s a reason to look more closely at the deal. The next step is reviewing the actual property, borrower profile and available financing programs.

REVIEW MY ACTUAL DEAL →
THE CALCULATOR DID ITS JOB

THE NUMBERS LOOK INTERESTING.

NOW LET’S LOOK AT THE ACTUAL DEAL.

A calculator can help you understand the math. The next step is reviewing the actual property, borrower scenario and available investment-property financing options.

GET QUALIFIED → EXPLORE INVESTMENT PROPERTY LOANS →
01 RUN THE NUMBERS
→
02 REVIEW THE DEAL
→
03 EXPLORE FINANCING
→
04 KEEP BUILDING
Financing is subject to lender and program availability, underwriting, borrower eligibility, property eligibility and applicable documentation requirements.