Rental Cash Flow and DSCR, 1 to 4 Units

See whether a one to four unit rental's rent covers its costs and its mortgage payment, on your own figures.

Price or value

Down payment

Mortgage rate (%)

Your own test rate. Nothing here is a quoted rate.

Amortization (years)

Rate type

Compounding for variable products is set by each lender's contract; change it here to test.

Rent

Number of units

Unit 1 rent / month

Unit 2 rent / month

Unit 3 rent / month

Unit 4 rent / month

Enter 0 for a unit you will live in.

Vacancy allowance (%)

Starting assumption you can change. It is not a rule or a lender figure.

Operating expenses

Property taxes / yr

Property insurance / yr

Utilities you pay / yr

Maintenance and repairs / yr

Management (% of collected rent)

Condo fees / month

Other expenses / yr

How rental income is counted

Rental income treatment (your assumption)

Lenders treat rental income in different ways. Pick one to see how it reads here, then change it to test. A licensed mortgage broker reviews which treatment applies to you.

Percent of gross rent counted (%)

Starting assumption only. Lenders and insurers count rental income in different ways, commonly a share of gross rent or a net rental income approach. Your lender may use another figure.

Property DSCR (net operating income / annual debt service)

Enter the price, down payment, rate and rent for each unit to see results.

Monthly cash flow before tax-

Cash-on-cash return (down payment only)-

Break-even occupancy-

Cap rate (NOI / price)-

Gross scheduled rent / yr-

Less vacancy allowance-

Effective gross income-

Operating expenses / yr-

Net operating income (NOI) / yr-

Mortgage amount-

Monthly mortgage payment-

Annual debt service-

Rental income counted (your treatment)-

Counted income / annual debt service-

This is a property-level view. A lender also looks at your own income and debts, and rental income is treated in different ways. A licensed mortgage broker reviews which treatment applies to you. A DSCR of 1.00 is where income equals debt service.

APR. OAC. For illustrative purposes only. Subject to change without notice.

Talk to Us

This is not an offer of financing, a commitment, or a guarantee of approval or loan amount. Rental income is assessed in different ways by different lenders, and a licensed mortgage broker reviews the real file. Results assume the figures you enter, Canadian semi-annual compounding for fixed rates (monthly compounding if you choose variable), and exclude mortgage default insurance premiums, closing costs and income tax. Speak with us for a real assessment. TMG AnchorPoint Mortgage Inc., a licensed mortgage brokerage: NS Licence 3000145, NB Licence 260055962, NL Licence 26-07-TM223-1.

What These Numbers Mean

Plain-language definitions, so you can play with the inputs with confidence.

Net operating income (NOI): Rent after your vacancy allowance, less operating expenses (taxes, insurance, utilities you pay, maintenance, management, condo fees, other costs), before any mortgage payment.
Mortgage interest, principal and income tax are not operating expenses.
DSCR (debt service coverage ratio): NOI divided by annual mortgage payments. At 1.00, income equals the payments. Above 1.00, income exceeds them; below 1.00, it falls short.
This is a property-level figure. A lender also looks at your own income and debts.
Monthly cash flow before tax: NOI less annual debt service, divided by 12. It can be negative, which is a result of the figures you entered, not an error.
Cash-on-cash return: One year of cash flow before tax divided by your down payment. Closing costs, renovations and any default insurance premium are not included.
Break-even occupancy: The share of full rent the property must collect for NOI to equal the mortgage payments. Management is treated as a share of collected rent. Above 100% means full rent would not cover the payments.
Rental income treatment: Lenders count rental income in different ways, for example a percentage of gross rent or a net figure. The setting on this page is your own assumption to test, not a rule.
A licensed mortgage broker reviews which treatment applies to the real file.

These are general definitions, not your numbers. Results depend on your situation, the property and the lender. Talk to us and we will go through it with you.

Rental Cash Flow and DSCR, 1 to 4 Units

What These Numbers Mean

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