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Calculator Documentation

Portfolio DSCR Calculator

Blended DSCR across your rental portfolio and how much more you can borrow

Schema version 1.0.0 · Category: investment

Inputs

Current Portfolio (Totals)

Combined monthly figures across all properties

FieldTypeDefaultNotes
Total Monthly Rentcurrency$12,000Gross rent across every property
Total Monthly P&Icurrency$6,500All existing mortgage payments combined
Total Monthly Taxescurrency$1,500Property taxes across the portfolio
Total Monthly Insurancecurrency$600Insurance across the portfolio
Total Monthly HOAcurrency$0HOA dues across the portfolio

New Loan (Optional)

A loan you are considering adding

FieldTypeDefaultNotes
New Loan Amountcurrency$0Set to 0 if just checking the current portfolio
New Loan Ratepercentage7.50%Rate on the prospective loan
New Loan Term (Years)number30Term of the prospective loan
New Property Monthly Rentcurrency$0Rent the new property adds (0 for a cash-out on existing)
New Property Taxes+Ins/mocurrency$0Monthly taxes and insurance the new property adds

Lender Requirement

The ratio to underwrite against

FieldTypeDefaultNotes
Required DSCRnumber1.2Portfolio/blanket lenders typically require 1.15-1.25

Calculations

Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.

currentPITIACurrent portfolio PITIA
totalMonthlyDebtService + totalMonthlyTaxes + totalMonthlyInsurance + totalMonthlyHOA
currentDSCRBlended DSCR today
totalMonthlyRent / max(currentPITIA, 1)
newMonthlyRateNew loan monthly rate
newLoanRate / 12
newTermMonthsNew loan months
newLoanTermYears * 12
newLoanPaymentP&I on the prospective loan (0 when amount is 0)
(newLoanAmount * newMonthlyRate * pow(1 + newMonthlyRate, newTermMonths)) / (pow(1 + newMonthlyRate, newTermMonths) - 1)
proFormaPITIAPITIA with the new loan
currentPITIA + newLoanPayment + newPropertyCosts
proFormaRentRent with the new property
totalMonthlyRent + newPropertyRent
proFormaDSCRBlended DSCR after the new loan
proFormaRent / max(proFormaPITIA, 1)
maxAdditionalPaymentRoom left in the portfolio for new debt service
max(proFormaRent / requiredDSCR - currentPITIA - newPropertyCosts, 0)
maxAdditionalLoanMaximum additional borrowing at the required DSCR
(maxAdditionalPayment * (pow(1 + newMonthlyRate, newTermMonths) - 1)) / (newMonthlyRate * pow(1 + newMonthlyRate, newTermMonths))
proFormaShortfallFlag: 0 = portfolio meets the required DSCR with the new loan
if(proFormaDSCR < requiredDSCR, 1, 0)

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