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DSCR from this rent and this loan

NOI, annual debt service, the coverage ratio, and the largest loan that still meets a target DSCR you can edit.

Income

Annual expenses

Loan

Starts at 1.25. Change it. This is your input, not a published rule.

How to use it

  1. Enter monthly rent, the vacancy percent, and annual taxes, insurance, HOA, and other expenses.
  2. Enter the loan amount, the rate, and the term. The rate starts at the PMMS 30-year fixed average and stays editable.
  3. Set the target DSCR. It starts at 1.25.
  4. Read NOI, annual debt service, DSCR, and the largest loan that meets your target.

Default rate: Freddie Mac Primary Mortgage Market Survey 30-year fixed average, FRED series MORTGAGE30US, as of 2026-10-08, 7.40%. https://fred.stlouisfed.org/series/MORTGAGE30US. Also listed at freddiemac.com/pmms.

Worked example

The form opens on these inputs. Change any of them and calculate again. Monthly rent $2,400, vacancy 5%, taxes $3,600, insurance $1,400, HOA $1,200, other expenses $2,400, loan $200,000, rate 7.40%, term 30 years, target DSCR 1.25.

Gross rent is $2,400 times 12, or $28,800. After 5% vacancy, effective gross income is $27,360. Expenses are $8,600. NOI is $18,760.

The fully amortizing payment on $200,000 at 7.40% for 30 years is $1,384.76 a month. Annual debt service is $16,617.12. DSCR is 18,760 / 16,617.12, or 1.129.

At a target of 1.25, maximum annual debt service is 18,760 / 1.25, or $15,008. The principal that produces that payment is $180,633. Type a different target to replace that loan amount.

Frequently asked questions

How is DSCR calculated on this page?

DSCR is annual NOI divided by annual principal and interest. NOI is monthly rent times 12, minus the vacancy percent, minus taxes, insurance, HOA, and other expenses. Debt service is the fully amortizing payment for the loan amount, rate, and term you enter.

Where does the starting interest rate come from?

The rate field starts at the Freddie Mac Primary Mortgage Market Survey 30-year fixed average, published as FRED series MORTGAGE30US. That observation is 7.40% as of 2026-10-08. Replace it with the rate on your quote.

Why does target DSCR start at 1.25?

1.25 is the starting number in the target field. It is an input. Edit it to any coverage ratio you want to test. The page does not treat 1.25 as a lender requirement.

How is the maximum loan calculated?

Maximum annual debt service equals NOI divided by your target DSCR. The maximum loan is the principal whose fully amortizing monthly payment, at your rate and term, equals that debt service divided by 12. If NOI is zero or negative, the maximum loan is $0.

Related tools

Price the rent first in the Rent Estimator, then screen the deal in the Cap Rate Calculator and the Cash Flow Analyzer.

The payment schedule is in the amortization calculator. Compare a short-term nightly rate with long-term rent in STR vs long-term rent.