Tool
DSCR calculator
Enter the property’s rent and expenses, then a loan amount, term and the rate you want to test. The calculator builds PITIA and divides rent by it. Nothing is preset: the rate field stays blank until you fill it in.
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Enter the monthly rent, loan amount, interest rate to see the ratio. The rate is yours to supply: use a figure from a quote you have, or one you want to stress-test. This page does not suggest or display rates.
Illustration only, using your inputs. Lenders calculate the ratio with their own rent source and expense figures, and some include items such as flood insurance or management. Not a loan offer or commitment to lend.
How to read the result
The ratio is a single number: gross monthly rent divided by the monthly principal, interest, taxes, insurance and association dues. At exactly 1.00 the rent covers the payment and nothing more. Above 1.00 there is a cushion; below it, the owner funds the shortfall.
Lenders run the same arithmetic with their own inputs. The rent figure may come from a lease or from the appraiser’s market rent estimate, and some programs use the lower of the two. Insurance and tax figures come from the actual quote and tax bill. For the details behind each input, see the encyclopedia entries on the DSCR ratio, PITIA and gross rents.
Why there is no default rate
DSCRLoans.loan does not publish rates. Pricing depends on the ratio itself, credit, leverage, property type, prepayment structure and the lender, and it changes with the market. Use a rate from a quote you already have, or several, to see how sensitive the ratio is.
Want a broker to check the math?
Tell us about the rental and the numbers. We are a mortgage broker: we arrange and shop business-purpose DSCR financing from wholesale lenders, then explain the options in plain English.