Free calculator
DSCR Max Loan Amount Calculator
Enter your rent, fixed costs, and interest rate to back-solve the maximum loan amount your rental property can support at any DSCR target.
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Loan inputs
What's the max loan?
Market rent or in-place lease
Annual tax ÷ 12
Hazard premium ÷ 12
Optional
Optional
Max loan results
Max loan amount
At 7.25% / 30-yr · keeps DSCR ≥ 1.0x
- Max monthly P&I
- $2,370
- Monthly fixed costs (tax + ins + HOA)
- $430
- Max purchase @ 75% LTV
- $463,223
- Max purchase @ 80% LTV
- $434,272
How this works
We solve for the maximum monthly P&I such that rent ÷ (P&I + fixed costs) ≥ your target DSCR, then back-calculate the loan amount using standard amortization. The purchase price ranges assume 75% and 80% LTV at closing. Adjust the target DSCR to model different lender requirements.
DSCR target comparison
| Target DSCR | Max P&I / mo | Max loan | Max price @ 75% |
|---|---|---|---|
| 0.75x | $3,303 | $484,235 | $645,646 |
| 1.0x | $2,370 | $347,418 | $463,223 |
| 1.25x | $1,810 | $265,327 | $353,770 |
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How the max loan calculation works
Most investors work forward — they know the purchase price and want to know the DSCR. The max loan calculator runs the problem in reverse: given a rent level, fixed costs, and a target DSCR, what is the largest loan the property can support?
Max P&I = (Gross Rent ÷ Target DSCR) − Fixed Monthly Costs
Once the maximum P&I is known, a standard amortization formula back-calculates the loan principal. From there, dividing by 0.75 or 0.80 gives the implied purchase price at those LTVs.
Worked example
A single-family home in Columbus, OH has market rent of $2,100/mo. Property tax is $250/mo, insurance is $90/mo, no HOA or flood. Total fixed costs: $340/mo. Target DSCR: 1.0, rate: 7.25%, 30-year term.
Max P&I = ($2,100 ÷ 1.0) − $340 = $1,760/mo. Back-solving at 7.25% / 30 years gives a loan amount of approximately $255,000. At 75% LTV that implies a max purchase price of $340,000; at 80% LTV, $319,000.
If the listing is at $280,000, you need 20% down for a $224,000 loan — comfortably within the $255,000 limit. If the listing is at $350,000, the 80% LTV loan of $280,000 slightly exceeds the limit and the deal needs a different structure (larger down, better DSCR assumption, or interest-only).
LTV and the purchase price back-calc
The calculator shows purchase price ranges at two LTVs — 75% and 80% — because DSCR lenders commonly use both:
- 75% LTV: the standard cap for most cash-out DSCR refis and for purchases at DSCR below 1.0. If you're at the tighter end of the DSCR range, plan on 75%.
- 80% LTV: available on DSCR purchases for borrowers with 680+ FICO and DSCR at or above 1.0. Requires less down payment and is the target for most buy-and-hold investors.
At 80% LTV, you need a 20% down payment. At 75% LTV, you need 25%. For a $300,000 property that's the difference between $60,000 and $75,000 in cash to close — significant capital planning implications.
Choosing the right target DSCR
The three presets — 0.75, 1.0, and 1.25 — correspond to the three main lender tiers in the DSCR market:
| Target DSCR | What it means | Typical LTV | Rate vs baseline |
|---|---|---|---|
| 0.75x | Minimum qualifying DSCR for most lenders; some no-ratio programs go lower | 65–70% | +0.50–0.625% |
| 1.0x | Break-even; rent covers full PITIA; broad lender access | 75–80% | baseline |
| 1.25x | Best-pricing tier; 25% rent cushion above debt service | 75–80% | −0.125% |
Interest-only as a lever
If the fully-amortizing P&I exceeds what the property can support, consider an interest-only structure. On a $250,000 loan at 7.25%, the amortizing 30-year payment is $1,706/mo; the interest-only payment is $1,510/mo — nearly $200/month less. That difference directly raises DSCR.
I/O programs typically require 25%+ down and 680+ FICO. To model an I/O scenario, divide your loan amount by 12 and multiply by the annual rate — that's your I/O payment. Then re-run DSCR manually or use our DSCR Calculator.
Rate sensitivity and why it matters
Every 0.25% change in rate moves your max loan amount by approximately $7,500–$10,000 on a $250,000 base loan. At scale — modeling a $2M portfolio — a half-point rate difference means $60,000–80,000 in buying power. This is why rate shopping across DSCR lenders matters even when the difference looks small on a single deal.
Next steps after the max loan
- Run the DSCR Calculator to verify your exact DSCR at the chosen loan amount
- Use the Cash-on-Cash Calculator to confirm the return on your down payment
- Check Cap Rate & NOI for a full expense analysis beyond PITIA
- Or get matched with lenders to see real quotes at your loan amount
Frequently asked questions
How does the max loan calculator work?
It starts with your monthly gross rent and subtracts fixed monthly costs (taxes, insurance, HOA, flood). The remainder — divided by your target DSCR — is the maximum monthly P&I payment the property can support. It then back-solves the loan amount that produces exactly that P&I payment at your chosen rate and term using standard amortization math.
What target DSCR should I use?
Use 1.0 as a starting point — it's the break-even where rent exactly covers PITIA, and many lenders will approve at this level. Choose 0.75 to see how aggressive you could be with the right lender, or 1.25 to model the loan amount that unlocks best-tier pricing and LTVs. Most buyers model all three and pick the loan that fits their down payment budget.
What's the difference between the 75% and 80% LTV purchase price columns?
DSCR lenders commonly offer 75% LTV on cash-out refinances and 80% LTV on purchases (for strong credit and DSCR). The max purchase price columns show you the property value that corresponds to your max loan amount at each LTV. If your max loan is $240,000, a 75% LTV implies a $320,000 purchase price; at 80% LTV that's $300,000.
Why don't management fees and vacancy count in this calculation?
DSCR lenders use gross scheduled rent — not net operating income — as the numerator in DSCR. They do not deduct vacancy, management, maintenance, or CapEx. Those are your cash-flow concerns, not the lender's qualifying metric. The denominator is full PITIA (P&I + taxes + insurance + HOA + flood).
Can I use this for a 15-year DSCR loan?
Yes — toggle to 15-year. The shorter term increases your monthly P&I significantly (roughly 30–40% higher than a 30-year), which dramatically reduces the qualifying loan amount. Most DSCR investors use 30-year terms for cash flow reasons, but 15-year programs exist and some offer better rates.
What if my fixed costs (taxes + insurance + HOA) are very high?
High fixed costs squeeze out P&I room. If your taxes, insurance, and HOA already consume more than rent ÷ target DSCR, there's no room for P&I — meaning the property doesn't support any loan at that DSCR target. The calculator will show 'no P&I room left.' Consider a lower DSCR target (0.75 tier) or negotiate price to reduce the payment.
Is this the same number a DSCR lender would calculate?
Very close, but lenders use the actual appraised market rent (from Form 1007), not your projected rent. They also confirm taxes and insurance from escrow analysis — not your estimate. Run this calculator with conservative rent assumptions (at or slightly below market) for a realistic outcome.
How does interest rate affect max loan amount?
Significantly. A 0.50% rate difference on a $300,000 loan changes monthly P&I by about $100/month — which at a 1.0 DSCR target means $100/month less rent headroom, which translates to roughly $14,000 less in qualifying loan amount. At higher rates, you either need lower loan amounts, more rent, or lower fixed costs to hit the same DSCR.