DSCR Loan Investment Calculator
Check debt service coverage ratio, cash flow and cash-on-cash return for a DSCR rental loan, with amortisation and a five-year equity projection.
- DSCR Minimum
- 1.25×
- Agency lender
- DSCR Rate
- 7.5–9%
- Non-QM
- Max LTV
- 80%
- DSCR loan
Formula & Statutory Rule
Formula
DSCR = NOI / annual_debt_service
Statutory Rule
annual_debt_service = monthly_payment × 12; lender_minimum = 1.25×Regional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Minimum DSCR | 1.25× | Agency |
| Rate range | 7.5–9% | Non-QM |
| Max LTV | 80% | DSCR |
Frequently Asked Questions
What is DSCR?
Debt service coverage ratio is net operating income divided by annual debt service; lenders require at least 1.25×.
How does a DSCR loan differ from conventional?
Qualification is based on the property's income rather than the borrower's personal income.
What rate do DSCR loans carry?
Non-QM DSCR loans typically price between 7.5% and 9%, higher than agency loans.
Can I use projected rent?
Yes. DSCR lenders use a market rent appraisal or the lease in place to underwrite the ratio.