DSCR Loan Calculator

Debt Service Coverage Ratio — the honest version. See the DSCR your lender uses to approve the loan side by side with the DSCR you’ll actually operate with.

Why two DSCRs? Lenders calculate DSCR using an optimistic NOI: gross rent minus only taxes and insurance. They ignore vacancy, management fees, maintenance and capex. That inflated number is what gets your loan approved. Your real operating DSCR — which determines whether you eat or bleed — is almost always lower. The gap between the two is the risk the bank doesn’t model.

Rental Income

Monthly rent ($)

Operating Costs

These are the costs banks exclude from their DSCR calculation. You pay them regardless.

Vacancy (% of gross rent)

Management (% of gross rent)

Maintenance (% of gross rent)

Capex reserve (% of gross rent)

Fixed Expenses

Both the bank and you include these in NOI.

Property taxes ($/yr)

Insurance ($/yr)

Loan Terms

Loan amount ($)

Interest rate (% APR)

Loan term (years)

DSCR Comparison

Bank DSCR (optimistic) —

Real investor DSCR (honest) —

DSCR gap (bank − honest) —

Debt Service

Monthly P&I—

Annual debt service—

Bank NOI (what lenders use)

Gross rent (annual)—

Taxes + insurance (annual)—

Bank NOI (gross rent − taxes − insurance)—

Honest NOI (what you operate with)

Effective gross income (after vacancy)—

Management (annual)—

Maintenance (annual)—

Capex reserve (annual)—

Honest NOI—

Capex is excluded from NOI under GAAP accounting, but it is real cash that leaves your pocket. Our honest DSCR includes it because it reflects your true operating picture — and because a lender’s approval based on a capex-free NOI does not pay for your roof replacement.