Run your New Jersey DSCR
Your DSCR
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Enter the monthly rent, a loan amount and the interest rate from your quote. The ratio appears as soon as those three are filled in; add taxes, insurance and dues for the real New Jersey number.
Planning tool only. Not a quote, an approval or a commitment to lend. Lenders may use market rent from the appraisal instead of your figure.
How the calculator works
The ratio is gross monthly rent divided by PITIA: principal and interest (calculated from your loan amount, the rate you enter and the amortization term), plus one-twelfth of the annual property tax, one-twelfth of annual hazard and flood insurance, plus monthly HOA or condo dues.
Example with user-style inputs: rent of $4,200, principal and interest of $2,300 from your quote, taxes of $12,000 a year ($1,000 a month), insurance of $2,400 a year ($200 a month) and no dues. PITIA is $3,500, so the DSCR is $4,200 ÷ $3,500 = 1.20.
Why New Jersey needs its own calculator
Most DSCR calculators treat taxes as an afterthought. In New Jersey, the tax bill is often the second-largest part of the payment, and the result changes sharply from one municipality to the next. That is why the result panel includes a tax check showing how much of each payment dollar goes to property tax. The flood line is separate because Shore and river properties often carry required flood insurance. Read New Jersey property taxes and DSCR for how to find the real bill.
Reading the result
- Below 1.00: rent does not cover the full payment. Some programs still work with more equity and reserves, but options narrow.
- Around 1.00 to 1.20: rent covers the payment with a modest cushion. Many programs work here.
- Above 1.20: a comfortable cushion that generally opens more programs.
These bands are general orientation, not lender guidelines. Lenders may use market rent from the appraisal instead of your figure, and credit, equity and reserves still decide the file. When the numbers look right, apply for a New Jersey DSCR loan.
Questions New Jersey investors ask
How do I calculate DSCR on a New Jersey rental?
Divide the gross monthly rent by the full monthly payment: principal and interest plus monthly property tax, insurance (including flood) and any dues.
Why does the calculator not suggest an interest rate?
Pricing depends on the file and the market that day, and we do not publish it. Use the rate from a quote you received.