EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

DSCR Rental Loan Pricing Calculator

DSCR loans qualify investor borrowers on property cash flow.

$
$
%

Max loan supported

$305,275

Max monthly payment

$2,240

Monthly NOI

$2,800

How the math works

NOI = rent − opex. Max payment = NOI / DSCR. Max loan = payment × annuity factor.

$3,500 − $700 = $2,800 NOI / 1.25 = $2,240 max payment. $305k max loan at 8% 30-yr.

How to Use

  1. Enter rental income / mo.
  2. Enter operating expenses / mo.
  3. Enter required DSCR.
  4. Enter interest rate %.
  5. Enter amortization years.
  6. Read max loan supported.

Frequently Asked Questions

What is a DSCR loan?

Investor-specific non-QM loan qualifying on property Debt Service Coverage Ratio (DSCR), not borrower personal income. DSCR = NOI ÷ annual debt service. 1.0 DSCR: breakeven. 1.25 DSCR: typical minimum. 1.5+: best pricing. LTV: up to 80%. Rate: 1.5-3% above QM. Most common for BRRRR investors, cash-out refinance of rentals, DSCR portfolio loans.

Rate by DSCR?

DSCR 1.0-1.1: +250-400 bps. 1.1-1.2: +200-300 bps. 1.2-1.3: +150-250 bps. 1.3-1.5: +100-175 bps. 1.5+: +75-150 bps. Plus LTV adjustments. Plus property-type adjustments (single-family: lowest, multifamily 5+: higher). Each layer adds 25-50 bps.

No personal income?

Correct — DSCR loans don't require W-2s, tax returns, or personal DTI. Real estate investor doesn't need to show personal income. But: credit score matters (680+ typical), reserves required (6-12 months debt service), experience preferred (not zero-experience borrowers). Some lenders require minimum 2 rentals already owned.

Common use cases?

(1) Scale-up rental portfolio (10+ properties). (2) BRRRR refinance after rehab-stabilization. (3) Portfolio loan combining 5-20 properties at once. (4) DSCR cash-out refi to fund next acquisition. (5) Interest-only investor financing. Institutional investor pipeline — most serious real estate investors use DSCR loans for 2nd+ properties after losing DTI capacity on conventional.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →