Qualifying a rental on its own income
Rent, operating cost and debt service — the ratio a DSCR lender underwrites to.
The property
A DSCR loan is underwritten on the building's income, not the borrower's.
Per month
Per year
Per year
Per month
Per year
Per year
Monthly cash flow
-$282
Debt-service coverage ratio 0.89. Lenders usually want at least 1.00, and price best above about 1.25.
Amortisation schedule
360 payments · $568,940 interest over the life of the loan. Illustrative.
| Period | Payment | Interest | Principal | Balance | Interest to date |
|---|---|---|---|---|---|
| Year 1 | $31,465 | $28,008 | $3,457 | $371,543 | $28,008 |
| Year 2 | $31,465 | $27,739 | $3,725 | $367,818 | $55,747 |
| Year 3 | $31,465 | $27,450 | $4,014 | $363,803 | $83,197 |
| Year 4 | $31,465 | $27,139 | $4,326 | $359,477 | $110,336 |
| Year 5 | $31,465 | $26,803 | $4,662 | $354,815 | $137,139 |
| Year 6 | $31,465 | $26,441 | $5,024 | $349,792 | $163,579 |
| Year 7 | $31,465 | $26,051 | $5,414 | $344,378 | $189,630 |
| Year 8 | $31,465 | $25,630 | $5,834 | $338,543 | $215,261 |
| Year 9 | $31,465 | $25,178 | $6,287 | $332,256 | $240,438 |
| Year 10 | $31,465 | $24,689 | $6,775 | $325,481 | $265,128 |
| Year 11 | $31,465 | $24,164 | $7,301 | $318,180 | $289,291 |
| Year 12 | $31,465 | $23,597 | $7,868 | $310,312 | $312,888 |
| Year 13 | $31,465 | $22,986 | $8,479 | $301,833 | $335,874 |
| Year 14 | $31,465 | $22,328 | $9,137 | $292,696 | $358,201 |
| Year 15 | $31,465 | $21,618 | $9,846 | $282,850 | $379,820 |
| Year 16 | $31,465 | $20,854 | $10,611 | $272,239 | $400,674 |
| Year 17 | $31,465 | $20,030 | $11,434 | $260,805 | $420,704 |
| Year 18 | $31,465 | $19,143 | $12,322 | $248,483 | $439,846 |
| Year 19 | $31,465 | $18,186 | $13,279 | $235,204 | $458,032 |
| Year 20 | $31,465 | $17,155 | $14,310 | $220,894 | $475,187 |
| Year 21 | $31,465 | $16,044 | $15,421 | $205,474 | $491,232 |
| Year 22 | $31,465 | $14,847 | $16,618 | $188,856 | $506,079 |
| Year 23 | $31,465 | $13,557 | $17,908 | $170,948 | $519,635 |
| Year 24 | $31,465 | $12,167 | $19,298 | $151,651 | $531,802 |
| Year 25 | $31,465 | $10,669 | $20,796 | $130,854 | $542,471 |
| Year 26 | $31,465 | $9,054 | $22,411 | $108,444 | $551,525 |
| Year 27 | $31,465 | $7,314 | $24,150 | $84,294 | $558,839 |
| Year 28 | $31,465 | $5,439 | $26,025 | $58,268 | $564,279 |
| Year 29 | $31,465 | $3,419 | $28,046 | $30,223 | $567,698 |
| Year 30 | $31,465 | $1,242 | $30,223 | $0 | $568,940 |
What this page assumed
- A 30-year amortising loan on the whole loan-to-value; interest-only DSCR products behave differently.
- Vacancy is allowed for at 5% of gross rent; management fees, capital expenditure reserves and turnover costs are not included.
- DSCR thresholds and pricing vary by lender and are not a rate sheet.
- Every figure on this page is illustrative. It is not a rate, an APR, a quote or a commitment to lend.
Share this result
Every number above is held in this page's web address, so a copied link opens with your figures already filled in.
Talk it through with someone
A demonstration form. It validates, then shows you the thank-you state — it does not send, store or transmit anything.
Numbers are a start, not an answer.
A calculator does not know your credit, your reserves, the property, or what the seller will agree to. On a real site this is where you would talk to somebody.