DSCR Loan Calculator
Estimate the debt service coverage ratio (DSCR) for a 1-4 unit rental, along with monthly cash flow, cap rate and the cash needed to close, or taken out on a refinance.
Debt service coverage ratio (DSCR)
1.28
Strong: the rent covers the payment with room to spare.
- Monthly rent$2,800
- Payment with taxes, insurance, HOA$2,191
- Monthly cash flow$386
- Cap rate7.5%
- Cash-on-cash return4.8%
- Loan amount
- $262,500
- Cash to close
- $96,625
Property expenses
Loan
30-year fixed. Example rate, not a quote
Disclaimer: These calculators are for educational and comparison purposes only. The interest rates and other values shown are hypothetical examples, not current rates, an advertisement of available terms, an offer of credit, a pre-qualification or pre-approval, or a commitment to lend. Payments shown are estimates of principal and interest plus any taxes, insurance, HOA dues and mortgage insurance you enter; they don’t include every cost of a loan, and the annual percentage rate (APR), which reflects the cost of credit including certain fees, may be higher than the interest rate. Your actual rate, APR, payment and terms depend on your credit, income, assets, loan amount, down payment, property type, occupancy, location and other factors, and are subject to underwriting approval. Rates, fees, taxes, insurance and other costs change without notice. VA funding fees are estimated from the U.S. Department of Veterans Affairs’ published schedule and depend on your eligibility; Federal First Lending LLC is not affiliated with or acting on behalf of the VA or any government agency. Rent vs. buy, DSCR and fix & flip results are not a guarantee of rent, property value, profit or return, and are not tax, legal or investment advice. DSCR and fix & flip loans are business-purpose loans for investment properties. Federal First Lending LLC, NMLS #2381991. Equal Housing Opportunity.
Common questions
What is DSCR?
Debt service coverage ratio compares a property’s rent with its monthly payment, including principal, interest, taxes, insurance and HOA dues. A ratio of 1.0 means the rent exactly covers the payment.
What DSCR do lenders look for?
Requirements vary by program. Many look for 1.0 or higher, and a higher ratio can help with pricing and the loan amount.
Do DSCR loans use my personal income?
DSCR loans are typically qualified on the property’s rental income rather than your personal income, which can help self-employed borrowers and investors with several properties.