Calculators for investors

Share this page

Run a rental the way investors and lenders read one: cash flow, the returns you compare, whether the rent covers the payment, and what the property could return by the year you sell.

Every figure starts from example numbers you can change. Nothing you enter leaves the page.

Start hereWhat will this rental earn, year by year?The customizable one. Set the purchase and the rent, add, rename or remove expense lines, and set growth and the year you sell.Open the rental forecaster

For learning, not for deciding. Example numbers and general rules, not an offer or advice. Talk with a licensed professional before you decide. About our tools

Two tools, one engine

The forecaster and the DSCR calculator run on the same math, and the DSCR calculator carries its numbers into the forecaster.

Year by year, to the saleRental property forecasterCash flow, NOI, cap rate, cash on cash, DSCR, break-even occupancy, GRM, the cash to buy and the rent needed, then a forecast table and chart with the total return and IRR for any year you sell.Open Does the rent cover the payment?DSCR calculatorRent against the full payment, with the 1.00 and 1.25 lines, the rent each one needs, and interest-only payments. The quick check a DSCR lender makes first.Open

What investors measure, and how

Each figure answers a different question. No single one decides a deal.

Cash flowRent collected, less operating costs and the mortgage paymentWhat the rental leaves you, or costs you, each monthSee it in the forecaster

Net operating income (NOI)Rent collected, less operating costsWhat the property earns before any loanSee it in the forecaster

Cap rateNOI ÷ priceA quick way to compare properties as if bought with cashSee it in the forecaster

Cash on cashA year’s cash flow ÷ the cash put inWhat your own money earns in year 1See it in the forecaster

DSCRRent ÷ the full payment (PITIA)Whether the rent covers the payment, as most DSCR lenders measure itSee it in the DSCR calculator

Break-even occupancy(Fixed costs + payment) ÷ rent, after percent costsHow full the rental must stay to cover everythingSee it in the forecaster

Gross rent multiplierPrice ÷ a year’s rentHow many years of rent the price equalsSee it in the forecaster

Total return and IRRCash flow to date plus the sale, less the cash put inThe whole result if you sell in a given year, and the yearly rate it equalsSee it in the forecaster

Figures before income taxes and depreciation. DSCR as most DSCR lenders measure it; some use net operating income instead, and each lender sets its own minimum. For a loan, lenders usually use the lower of the lease and the appraiser’s market rent.

Loans for rentals

Investors can finance a rental with an agency loan (conventional, and FHA or VA when you live in one unit) or with a non-agency loan such as a DSCR, bank statement or 1099 loan.

Non-agency loans usually cost more than agency loans: a higher rate, more in fees, a larger down payment and reserves. They are the right tool when the agency rules do not fit: when your tax returns show less income than you earn, when you own more financed properties than conventional allows, or when you want the rent, not your income, to qualify the loan. We figure your income the agency way first, and when your returns support a conventional loan we price it beside the non-agency option, so you see both.

AgencyConventional investment loanUsually the lowest cost when your tax returns show the income. At least 15% down on a one-unit rental and 25% on two to four units. Lenders usually count 75% of the rent toward income.Read more about Conventional investment loan
AgencyLive in one unit of a 2 to 4 unit homeOwner-occupied loans work when you live in one unit and rent the others: 3.5% down with FHA, 5% with a conventional loan, or no down payment with VA for those who are eligible.Read more about Live in one unit of a 2 to 4 unit home
Non-agencyDSCR loanQualifies on the rent compared with the full payment, not your tax returns. It fits when your returns show less income than you earn or you have reached the conventional limit on financed properties. Expect a larger down payment, reserves, a higher rate and costs, and often a prepayment penalty in the first few years.Read more about DSCR loan
Non-agencyBank statement and 1099 loansFor self-employed buyers whose returns understate what they earn: income from 12 or 24 months of bank statements, or from 1099 forms.Read more about Bank statement and 1099 loans

Building toward a rental

Many investors start with the home they own: its equity, or the choice between paying it down and investing.

To learn more, read becoming an investor and how DSCR loans work.

Your rental, priced both ways

Your Mortgage Plan puts the loans that fit your rental side by side: a conventional investment loan and a DSCR or other non-agency option, with the payment, cash to close and cost over time for each.

Get your Mortgage Plan

Example numbers for education, not a loan offer. Rates change daily.