How much debt can the rent support?

Work backwards from rent, taxes, insurance, HOA and a lender DSCR target to a maximum loan and purchase price.

Property & loan

Purchase or appraised value ($)

Down payment or equity (%)

Interest rate (%)

Use the written rate from the loan scenario you are screening.

Loan term (years)

Rent & housing costs

Gross monthly rent ($)

Use the lender-eligible rent from the lease or appraisal when available.

Property tax ($ / year)

Insurance ($ / year)

HOA dues ($ / month)

Target lender DSCR

Program thresholds vary. Test the requirement in the lender’s written terms.

Investor reality check

These costs do not change the lender-style rent ÷ PITIA ratio. They show whether the property still produces cash after operating costs.

Vacancy allowance (%)

Maintenance (% of rent)

Property management (% of collected rent)

Capital reserves (% of rent)

Other operating costs ($ / month)

Example assumptions only. Replace these numbers with your own.

Your estimated results

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Calculated from the assumptions on this page.

Lender screen—

Gross rent compared with PITIA.

Investor reality—

Cash flow after vacancy, operating costs and reserves.

Minimum lender rent—For the selected DSCR target

Minimum break-even rent—After investor operating costs

Maximum safe offer—Approximate price for $0 cash flow

Downside check—

Rent −10%, vacancy +5 points, rate +0.75 points, maintenance and reserves +2 points.

This is a screening model, not loan approval. Lenders determine eligible rent, PITIA, minimum ratio, LTV, reserves and program rules. The maximum offer holds taxes, insurance, HOA and other costs unchanged while price changes.

USD · Before income tax and appreciation. Calculation assumptions.

The calculation starts with allowable housing cost

Gross rent divided by the target DSCR gives the maximum PITIA. After subtracting tax, insurance and HOA, the remaining amount supports principal and interest. The calculator converts that payment into a loan using your rate and term.

Purchase price depends on your equity

The same loan supports a different purchase price at 20%, 25% or 30% down. A larger down payment can make a lender ratio pass, but it does not automatically improve the return on your cash.

Use the result as a ceiling

Rates, points, reserves, LTV limits, borrower qualifications and property eligibility can reduce an actual approval. The figure is a pre-offer screen, not a commitment from a lender.

Read the formulas, sources and limitations