Calculator Documentation
DSCR Investor Calculator
Investor-focused DSCR analysis with vacancy, cap rate, cash-on-cash returns, and max loan calculations
Schema version 2.0.0 · Category: investment
Inputs
Property Income
Monthly rental income and vacancy assumptions
| Field | Type | Default | Notes |
|---|---|---|---|
| Monthly Rent | currency | $2,500 | Gross monthly rental income |
| Vacancy Rate | percentage | 5.00% | |
| Other Income | currency | $0 | Laundry, parking, storage, etc. |
Purchase & Loan
Purchase price and financing details
| Field | Type | Default | Notes |
|---|---|---|---|
| Purchase Price | currency | $350,000 | |
| Down Payment | percentage | 25.00% | |
| Interest Rate | percentage | 7.50% | |
| Loan Term | select | 30 |
Operating Expenses (TIA)
Taxes, Insurance, and Association dues
| Field | Type | Default | Notes |
|---|---|---|---|
| Property Taxes | currency | $350 | Monthly property tax amount |
| Insurance | currency | $150 | Monthly insurance premium |
| HOA Dues | currency | $0 |
Lender Requirements
DSCR requirements for approval
| Field | Type | Default | Notes |
|---|---|---|---|
| Required DSCR | number | 1 | Minimum DSCR required by lender |
| Target DSCR | number | 1.25 | Your target DSCR for comfortable cash flow |
Adjustable Parameters
| Parameter | Default | Range | Purpose |
|---|---|---|---|
| Excellent DSCR Threshold | 1.5 | 1.3 - 2 | DSCR above this is excellent |
| Strong DSCR Threshold | 1.25 | 1 - 1.5 | DSCR above this is strong |
Calculations
Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.
loanAmountLoan amount after down payment
purchasePrice * (1 - downPaymentPct)
downPaymentDown payment amount
purchasePrice * downPaymentPct
loanTermMonthsLoan term in months
loanTerm * 12
monthlyRateMonthly interest rate
interestRate / 12
principalAndInterestMonthly P&I payment
if(monthlyRate == 0, loanAmount / loanTermMonths, (loanAmount * monthlyRate * pow(1 + monthlyRate, loanTermMonths)) / (pow(1 + monthlyRate, loanTermMonths) - 1))
effectiveRentEffective monthly rent after vacancy plus other income
monthlyRent * (1 - vacancyRate) + otherIncome
grossRentalIncomeGross rental income (effective rent)
effectiveRent
tiaMonthly TIA (Taxes, Insurance, HOA)
propertyTaxes + insurance + hoaDues
pitiaMonthly PITIA (P&I + Taxes + Insurance + HOA)
principalAndInterest + tia
dscrDebt Service Coverage Ratio
if(pitia > 0, effectiveRent / pitia, 0)
monthlyCashFlowMonthly cash flow after PITIA
effectiveRent - pitia
annualCashFlowAnnual cash flow
monthlyCashFlow * 12
operatingExpensesManagement (8%), maintenance (5%), and CapEx (5%) reserves; the lender DSCR intentionally excludes these, investor returns must not
effectiveRent * 0.18
noiAnnual Net Operating Income (after operating expenses)
(effectiveRent - tia - operatingExpenses) * 12
capRateCap Rate (NOI / Purchase Price)
if(purchasePrice > 0, (noi / purchasePrice) * 100, 0)
investorCashFlowAnnual cash flow after operating expense reserves
annualCashFlow - operatingExpenses * 12
totalCashInvestedDown payment plus ~3% closing costs
downPayment + purchasePrice * 0.03
cashOnCashCash-on-Cash on total cash, after operating reserves
if(totalCashInvested > 0, (investorCashFlow / totalCashInvested) * 100, 0)
maxPITIAAtTargetMaximum PITIA at target DSCR
effectiveRent / targetDSCR
maxPIAtTargetMaximum P&I at target DSCR
maxPITIAAtTarget - tia
maxLoanAtTargetMaximum loan amount at target DSCR
if(maxPIAtTarget > 0 && monthlyRate > 0, maxPIAtTarget * ((1 - pow(1 + monthlyRate, -loanTermMonths)) / monthlyRate), 0)
maxPurchaseAtTargetMaximum purchase price at target DSCR
if(downPaymentPct < 1, maxLoanAtTarget / (1 - downPaymentPct), maxLoanAtTarget)
requiredRentForTargetRequired rent to meet target DSCR
pitia * targetDSCR
rentGapToTargetRent surplus/shortfall vs target DSCR
effectiveRent - requiredRentForTarget
maxPITIAMaximum PITIA at required DSCR
effectiveRent / requiredDSCR
maxPandIMaximum P&I at required DSCR
maxPITIA - tia
maxLoanAmountMaximum loan amount at required DSCR
if(maxPandI > 0 && monthlyRate > 0, maxPandI * ((1 - pow(1 + monthlyRate, -loanTermMonths)) / monthlyRate), 0)
dscrTierDSCR qualification tier
if(dscr >= 1.5, 4, if(dscr >= 1.25, 3, if(dscr >= 1.0, 2, 1)))
dscrShortfallInverted qualification flag for the verdict (0 = meets required DSCR, 1 = falls short)
if(dscr < requiredDSCR, 1, 0)
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