Personal Loan Interest Rate Calculator

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Loan Amount (₹)

Interest Rate (%)

Loan Tenure (Years)

5 years

Year	EMI	Principal	Interest	Balance
1	₹1,000	₹500	₹500	₹99,500
2	₹1,000	₹520	₹480	₹98,980
3	₹1,000	₹540	₹460	₹98,440
4	₹1,000	₹560	₹440	₹97,880
5	₹1,000	₹580	₹420	₹97,300

How to Use the DSCR Loan Calculator?

Using the DSCR loan calculator is pretty simple. You’ll need your net operating income (NOI) and your total annual debt obligations. Once entered, the calculator will show your DSCR ratio, giving you immediate insight into how comfortably you can handle a loan. A DSCR above 1.0 usually signals sufficient income to cover debts, which increases your chances of loan approval.

How to Use the DSCR Loan Calculator?

What Is DSCR?

DSCR, or Debt Service Coverage Ratio, is a financial metric that compares your income to your debt payments. Lenders use it to assess whether you generate enough income to repay your loan. A DSCR of 1.0 means your income exactly covers your debt; anything higher shows a surplus, while anything lower may indicate a higher risk to lenders. The dscr ratio calculator helps quantify this ratio clearly, offering an essential snapshot of your ability to repay a loan, especially for commercial and real estate lending.

Why DSCR Matters for Real Estate Loans?

When applying for a real estate loan, especially for investment or rental properties, DSCR plays a crucial role. Lenders want to ensure the income generated by the property can cover its operating expenses and debt payments. A strong DSCR shows financial stability and lowers the lender’s risk, which can lead to better DSCR loan rates or more favorable loan terms.

Additionally, some lenders have strict DSCR requirements for approval. Falling below the threshold may mean a denied application or higher DSCR loan interest rates. Using a DSCR calculator for rental property helps estimate your loan readiness and improve your chances of securing financing.

DSCR Loan Formula: How to Calculate?

Here’s how the DSCR loan formula works in a few easy steps:

Step 1: Calculate Net Operating Income (NOI): Total rental income – operating expenses
Step 2: Determine Total Debt Service: Annual principal + interest payments on the loan
Step 3: Apply the formula:
DSCR = Net Operating Income ÷ Total Debt Service
Step 4: Interpret the result:
- DSCR > 1.0 = Positive cash flow
- DSCR < 1.0 = Insufficient income to cover debt

This formula is built into the dscr loan calculator on our site for fast, accurate estimates.

Benefits of Using a DSCR Loan Calculator

Using a debt service ratio calculator can simplify loan planning in several ways:

A dscr calculator rental property tool is especially handy when expanding a portfolio.

DSCR Loan EMI Calculator FAQs

How to calculate for a DSCR loan?

Calculate DSCR by dividing annual net operating income by annual debt service. Use our calculator to determine loan eligibility based on property income.
What is a good DSCR ratio for a loan?

A DSCR above 1.25 is typically considered good. Higher ratios (1.5+) indicate stronger cash flow and may qualify for better rates and terms.
How to calculate 1.25 DSCR?

or 1.25 DSCR, ensure your property's annual net income is 25% higher than annual loan payments. Divide income by desired DSCR to find maximum debt service.
What is the rate on DSCR loan?

DSCR loan rates typically range from 6-9%, varying by lender, property type, loan term, and your DSCR ratio. Higher ratios may secure lower rates.
How much do I need to put down on a DSCR loan?

Most DSCR loans require a 20-25% down payment. Higher-risk properties or lower DSCR ratios may necessitate larger down payments of 30% or more.
What is a 1.50 DSCR?

A 1.50 DSCR means property income is 50% higher than debt obligations, indicating strong cash flow and lower lending risk. Lenders prefer this comfortable margin.
How to Calculate Maximum Loan Amount Using Debt Service Coverage Ratio (DSCR)?

Divide annual property income by the required DSCR, then divide by the annual loan constant (interest rate plus amortization factor) to determine the maximum loan amount.