DSCRInvestment property calculator
Enter a price, a rent, and a rate. Get cap rate, DSCR, cash-on-cash, gross yield, GRM, and the 1% rule for the deal at once.
Assumptions: 25% down + 3% closing costs, 40% opex/vacancy load 30-year amortization. Lenders typically require DSCR ≥ 1.2. Estimates, not a quote.
The example above, a $300,000 home renting for $2,000 at 6.80%, returns a 0.82 DSCR and -3.81% cash-on-cash. It does not clear the 1.2 lender minimum. Most U.S. single-family deals look like this at today's rates. Lower the price, raise the rent, or shop a better rate to find where it flips positive.
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What each metric means
Cap rate
NOI ÷ price. The unlevered yield, so it compares properties without financing. Formula →
DSCR
NOI ÷ annual debt service. The qualifying line for a DSCR loan. Most lenders want 1.2 or higher. DSCR loans →
Cash-on-cash
Annual cash flow ÷ cash invested. Your real return after the loan, on the money you put in. Detail →
GRM
Price ÷ gross annual rent. A fast screening ratio where lower is cheaper per rent dollar. Calculator →
1% rule
Monthly rent ÷ price. A blunt screen that few markets pass at current prices. Why →
Gross yield
Gross annual rent ÷ price, before any expenses. The top-line number behind the rest.
The assumptions behind the result
Defaults follow a typical DSCR-loan purchase. Change any input above and every number recomputes live.
The mortgage rate shown is a current market estimate, not a lender quote. Run your own rate and expense load before committing to a deal.
Frequently asked
What does this investment property calculator do?
It computes cap rate, gross yield, DSCR, monthly payment, annual cash flow, cash-on-cash, GRM, and the 1% rule from your price, rent, and financing. The full deal analysis sits in one place.
Which metric matters most?
It depends on your strategy. Cap rate compares properties unlevered, DSCR determines loan eligibility, cash-on-cash shows your real return, and GRM is a quick screen. Use them together.
What expense assumption should I use?
40% of gross rent is a conservative default for single-family rentals. It covers taxes, insurance, management, maintenance, and vacancy. Lower it for newer properties or higher-cost markets, with caution.
Why is the default deal cash-flow negative?
At a 6.80% 30-year rate, a $300,000 property renting for $2,000 a month lands at a 0.82 DSCR, below the 1.2 most lenders want. That is the math facing most buyers right now. Change the price, rent, or rate above to find the point where a deal clears.