Humble Deal · Estimate
Debt service coverage (DSCR)
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Assumptions breakdown
Annual scheduled rent —
Vacancy allowance —
Effective annual income —
Annual operating expenses —
Net operating income (NOI) —
Annual loan payments —
Estimated cash invested —
Monthly principal & interest — How to read this: Cap rate is annual NOI divided by purchase price, before financing. Cash-on-cash compares annual cash flow after modeled loan payments with estimated upfront cash invested. DSCR is NOI divided by annual principal-and-interest payments; below 1.0 means modeled NOI is less than those payments, while above 1.0 means it exceeds them. Lender formulas and requirements can differ.
Example: With a $250,000 purchase, $200,000 loan at 7% for 30 years, $2,500 monthly scheduled rent, 5% vacancy, and $900 monthly operating expenses, estimated NOI is $19,500 per year. Approximate annual principal-and-interest payments are $15,968, giving about a 1.22 DSCR before other costs; your own inputs will change the result.
What to verify next The numbers above are planning estimates built from the amounts you entered. These are checks for you to complete with local quotes, documents, and qualified professionals — they are not advice, verified quotes, or confirmed terms.
Pull current rent comps for the property type and confirm the entered rents against real listings. Get written quotes for insurance, taxes, management, and any known repairs before relying on the expense totals. Ask a lender for actual rate, term, and down-payment requirements and compare them with your assumptions. Budget time for inspections, title review, and appraisal, the due-diligence steps this estimate cannot do for you. Your next step A deal that looks good today should also survive a bad year. Stress test the numbers next, or work through the deal worksheet.
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Planning estimates only. The calculator assumes a fully amortizing fixed-rate loan and excludes taxes on income, sale costs, capital expenditures beyond upfront improvements, and other costs not entered. It is not investment, financial, legal, tax, or lending advice; verify assumptions and loan terms with qualified professionals.