DSCR Max Loan Amount Calculator

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:

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