Free DSCR Loan Calculator for Real Estate Investors

*This loan calculator is for informational purposes only and does not constitute a loan offer or commitment. Calculations are estimates based on the information you provide and may not reflect actual loan terms, rates, or eligibility. All financing is subject to credit approval, lender guidelines, and market conditions. Please contact Cape Henry Capital for personalized loan quotes.

How to Use the DSCR Loan Calculator

The calculator runs a full deal analysis in real time as you enter your numbers. Here's exactly what to input and what each result means:

Step 1, Choose Purchase or Refinance

Select the tab that matches your transaction. The Purchase tab calculates your down payment and cash to close. The Refinance tab evaluates your current loan against the property's income.

Step 2, Enter Property Value and Purchase Price

Input the appraised market value and your contracted purchase price. The difference between these feeds the LTV calculation.

Step 3, Enter Your Loan Amount

This is the amount you're borrowing, typically purchase price minus your down payment. For DSCR loans, most lenders (including Cape Henry Capital) lend up to 80% LTV on single-family and small multifamily properties.

Step 4, Enter Monthly Rent

Use the actual lease amount for tenanted properties. For vacant properties, use the market rent estimate from the appraisal or a comparable rental analysis. For short-term rentals, use the projected annual STR income divided by 12.

Step 5, Enter Expenses

Input annual insurance, annual property taxes, monthly HOA (if applicable), interest rate, and loan term. These feed the PITI calculation that lenders use to measure your debt service.

Step 6, Review Your Results

The calculator instantly outputs your DSCR Score, LTV, Cap Rate, monthly P&I, monthly PITI, monthly cash flow, down payment required, and total cash to close. See what each result means in the glossary below.

What Your Results Mean, DSCR Calculator Metrics Explained

DSCR Score (Debt Service Coverage Ratio)

Your DSCR score is the single most important number on this page. It's calculated as:

DSCR = Annual Rental Income ÷ Annual Debt Service (PITI)

• DSCR below 1.0, Property does not generate enough rent to cover its debt obligations. Most lenders will not approve a loan at this level.

• DSCR of 1.0, Property exactly breaks even. Rental income covers PITI dollar for dollar.

• DSCR of 1.05–1.20, Minimum approval zone for most DSCR lenders, including Cape Henry Capital. Loan pricing may be higher at lower DSCRs.

• DSCR of 1.25+, Strong cash flow. Typically qualifies for the most competitive rates and terms.

If your DSCR comes in below 1.0, your options are: increase the rent (if market supports it), increase your down payment to reduce the loan amount and lower debt service, or find a different property.

LTV (Loan-to-Value)

LTV is your loan amount divided by the appraised property value, expressed as a percentage. It determines your required down payment and affects your rate.

• LTV of 75–80%, Standard for DSCR loans; 20–25% down payment required

• LTV above 80%, Most DSCR programs require additional reserves or mortgage insurance above 80% LTV

• Lower LTV = better rate, A larger down payment typically improves your rate and approval terms

Cap Rate (Capitalization Rate)

Cap Rate measures the property's income return independent of financing. It's calculated as Net Operating Income (NOI) ÷ Property Value.

Cap Rate tells you how the deal performs on its own merits before you layer in your specific financing. It's useful for comparing properties across markets, a single-family in San Antonio and a duplex in Houston can be compared on cap rate regardless of their different price points.

• Cap Rate of 5–6%, Typical for premium markets

• Cap Rate of 7–8%, Strong return; typical for workforce housing markets

• Cap Rate of 8%+, Exceptional; typical for cash-flow markets

P&I (Principal & Interest)

Your monthly principal and interest payment based on the loan amount, interest rate, and term. This is the base mortgage payment before taxes, insurance, and HOA.

PITI (Principal, Interest, Taxes & Insurance)

Your total monthly debt service including all required payments. This is the number lenders use to calculate your DSCR. Always use PITI, not just P&I, when evaluating a deal, because taxes and insurance are real cash obligations the property must cover.

Monthly Cash Flow

Rental income minus total monthly PITI and HOA. Positive cash flow means the property generates income above its debt service. This is your monthly return before maintenance, vacancy, and property management expenses, factor those in separately for a complete picture.

Down Payment and Cash to Close

Down Payment is the equity you're contributing to the purchase. Cash to Close is the total cash you need at the closing table, down payment plus closing costs (origination fees, title, appraisal, prepaid expenses). Use this number to plan your liquidity before making an offer.

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Use the calculator above to analyze your property, then take the next step:

Get a Rate Quote →

Get a personalized DSCR rate based on your property, market, and loan parameters.

Apply for Pre-Approval →

Start your DSCR loan application, no income docs required, close in as little as 14 days.

Schedule a Free Consultation →

Talk through your deal with a Cape Henry Capital DSCR loan specialist.

Also useful:

• Virginia DSCR Rental Property Loans

• Texas DSCR Rental Property Loans

• DSCR Loan Guide

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