DSCR calculator help
How the calculator works: income after reserves, divided by monthly payment.
DSCR calculator help steps
Step 1
Start with monthly rent
Use the market rent or the stabilized rent you expect the property to support each month.
Step 2
Subtract simple reserves
Vacancy, management, taxes, insurance, HOA, and other monthly costs reduce the income available to cover the payment.
Step 3
Divide by debt service
When adjusted income is above debt service, DSCR rises. A stronger ratio usually gives the loan more room.
Quick example
$3,250 rent- $163 vacancy- $260 management- $510 taxes + insurance= $2,318 adjusted income/ $2,217 debt service= 1.05x DSCR