A DSCR loan calculator is a free online tool that helps you estimate key metrics related to Debt Service Coverage Ratio (DSCR) loans. These loans are specifically designed for real estate investors, focusing on the property's income-generating potential rather than your personal finances.
The calculator uses a simple formula to determine your DSCR:
DSCR = Net Operating Income (NOI) / Annual Debt Service
Net Operating Income (NOI): This is the property's annual rental income minus operating expenses (e.g., property taxes, insurance, maintenance).
Annual Debt Service: This is the total annual mortgage payment, including principal and interest.
By inputting information about the property, such as the purchase price, down payment, loan terms, and estimated rental income, the calculator can estimate your DSCR, monthly payments, and potential borrowing power.
Our user-friendly DSCR loan calculator is designed to simplify your financial planning. Simply input the following information:
Purchase price of the property
Down payment amount
Loan term (e.g., 30 years)
Interest rate
Estimated annual rental income
Estimated annual operating expenses
The calculator will then provide you with:
Debt Service Coverage Ratio (DSCR)
Estimated monthly mortgage payments
Potential borrowing power
