DSCR Loan Calculator
Calculate Debt Service Coverage Ratio and maximum loan amount for investment property financing
About this calculator
A DSCR Loan Calculator helps real estate investors determine their Debt Service Coverage Ratio and calculate the maximum loan amount they can qualify for when purchasing investment properties. The DSCR measures a property's ability to cover its debt payments by comparing net operating income to total debt service. This calculator is essential for investors seeking DSCR loans, which are based on property cash flow rather than personal income, making it easier to finance multiple investment properties and expand your real estate portfolio.
How to use
Enter your property's monthly rental income, operating expenses, and proposed loan terms including interest rate and loan term. The calculator will compute your DSCR ratio and show the maximum loan amount you qualify for. Most lenders require a minimum DSCR of 1.20-1.25 for investment property financing.
Frequently asked questions
What is a good DSCR ratio for investment properties?
Most lenders require a minimum DSCR of 1.20-1.25, meaning the property generates 20-25% more income than needed to cover debt payments.
Do DSCR loans require personal income verification?
No, DSCR loans are qualified based on the property's cash flow rather than the borrower's personal income or tax returns.
What expenses are included in DSCR calculations?
Operating expenses typically include property taxes, insurance, maintenance, property management fees, and vacancy allowance, but exclude mortgage payments and depreciation.