Calculator
Run the ratio before you run the offer.
The same arithmetic a lender uses: rent divided by the full monthly payment, with property tax, insurance, flood coverage and association dues included. The rate field starts blank, because the rate belongs to your scenario, not to a marketing page.
Debt service coverage ratio
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Add monthly rent, loan amount, an interest rate to see the ratio. The rate field is blank on purpose — use the rate you are modeling, not a number we supplied.
An estimate built from the numbers you type, using simple amortization. Not a rate quote, loan offer or commitment to lend. Lenders use their own rent and expense figures, and every loan is subject to underwriting and lender approval.
What the number means
At 1.00 the rent covers the payment exactly. Above 1.00 the property produces a cushion; below 1.00 you are covering a shortfall every month. Programs differ on what they will accept, and a ratio that clears one lender’s floor may miss another program by a hair.
Read how DSCR is calculated for the full walkthrough, including which Connecticut expenses belong in the payment.
Where investors get it wrong
- Using principal and interest as the whole payment
- Estimating taxes from the purchase price instead of the town bill
- Insuring at an owner-occupied rate for a rental
- Counting rent from a unit the town does not recognize
Read Connecticut property tax and insurance for the local detail.
Next step
Want a second opinion on the numbers?
Send the address and the rent. We will model the tax bill and insurance quote for that specific property and tell you which programs are worth shopping.