Ridge Street Capital built this DSCR refinance calculator to help real estate investors see how much equity can be accessed from a rental property and whether it qualifies for a DSCR Loan. Enter your property value, current mortgage balance, rent, and expenses to get your maximum cash-out amount, new monthly PITIA, and DSCR on the new loan in real time.

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How to Use the DSCR Refinance Calculator

Step 1: Enter Your Property Details

Start with the current appraised market value of the property. Use a realistic, conservative figure. DSCR lenders order an independent appraisal at application, and an inflated estimate here produces a cash-out number that will not survive underwriting.

Enter the outstanding balance on your existing mortgage: the remaining principal, not the original loan amount. The cash-out figure is the difference between the new loan at your selected LTV and what you currently owe. If the current balance exceeds the maximum new loan at the selected LTV, the calculator flags that no cash-out is available at those terms.

Step 2: Enter Rental Income and Monthly Expenses

Enter the property's current or expected monthly rent. Then add monthly property taxes, insurance, and any HOA dues to complete the calculation. These four figures form the PITIA denominator in the DSCR calculation. Understating taxes or insurance produces a DSCR that looks better in the calculator than it will during underwriting.

Step 3: Set Your New Loan Terms

The LTV slider defaults to 75%, which is Ridge Street Capital's ceiling for DSCR cash-out refinances. Lowering it reduces the cash-out amount but improves the DSCR and may qualify the deal at a better rate tier. 

Adjust the interest rate to match your quote, or use the default value as a starting assumption. The calculator defaults to a 0% origination fee, reflecting Ridge Street Capital's starting pricing. All calculations assume a fully amortizing 30-year loan term.

Step 4: Read the Cash-Out Summary

The top of the results panel shows the cash-out amount: the maximum equity the property can release at the selected LTV. Below it, "Cash to You at Closing" deducts the origination fee from that figure. For reinvestment planning, this is the number that matters. It reflects what actually reaches the investor after closing costs, not the gross loan increase.

Step 5: Review the New Debt Service

The monthly P&I row shows the principal and interest payment on the new loan. Full PITIA adds taxes, insurance, and HOA to that figure. This total is what the rental income must cover to satisfy the DSCR loan requirement.

Step 6: Check the DSCR

The DSCR row updates automatically as you change any input. A ratio of 1.0 or higher meets the minimum requirement, while 1.25 or above indicates a stronger cash-flow profile. The status label categorizes the result as Excellent, Strong, Good, Marginal, or Below Min.

If the result shows Below Min, the calculator displays the minimum rental income required to reach the 1.0x threshold. Properties with a DSCR near the 1.0 threshold have limited margin for vacancies, rent declines, or unexpected expense increases. 

What the DSCR Refinance Calculator Results Tell You

• Cash-Out Available is the gross equity the property can release at the selected LTV. This figure assumes the loan closes at exactly the LTV shown. The actual funded amount depends on the appraisal.
• Cash to You at Closing is the net figure after the origination fee is deducted. 
• Max New Loan is the total loan amount at the selected LTV. The difference between Max New Loan and Current Loan Balance is the gross cash-out. At 75% LTV on a property valued at $500,000, the maximum new loan is $375,000.
• New LTV confirms the leverage position after the refinance. 
• Monthly P&I and Full PITIA show the actual debt service on the new loan. Underwriters use Full PITIA to calculate DSCR, not the mortgage payment alone.
• DSCR on New Loan is the ratio the lender evaluates at underwriting. 

How to Improve a Marginal DSCR

When the calculator returns a Marginal or Below Min result, reducing the LTV is often the fastest way to improve the outcome. A smaller loan amount lowers the monthly principal and interest payment, reducing total PITIA and increasing the DSCR. Investors who fall just below the 1.0x threshold can sometimes qualify with only a modest reduction in leverage.

Interest rate and rental income also affect the result. A lower rate reduces monthly debt service and improves DSCR at any LTV. Higher rental income increases the ratio directly. In some cases, a property leased below market can qualify once rents are adjusted to market levels and supported by current documentation.

A Below Min result with the LTV already at 60% or below typically means the property's rent does not support the debt service at any DSCR loan amount. In that situation, a rate-and-term refinance, which does not increase the loan balance, may be a more appropriate structure. The full explanation of when each refinance type applies is in the DSCR cash-out refinance guide.

How to Apply for a Cash-Out Refinance

Once the calculator shows a qualifying DSCR, Ridge Street Capital can issue a term sheet within 2 business hours. The process requires no personal income documentation.

Here is what happens from inquiry to close:

• Submit your deal details. Complete the Quick Application with basic property and borrower information. No W-2s, tax returns, or pay stubs required.
• Receive a term sheet or pre-approval letter within 2 business hours of submission.
• Appraisal is ordered by Ridge Street Capital. The appraisal establishes the value that determines your final loan amount and cash-out figure.
• A soft credit check may be pulled during underwriting process. The minimum FICO score for a cash-out refinance is 660. 
• Loan closes in 21 to 25 business days. Title can be in your personal name or under an LLC. 

Put your equity to work with Ridge Street Capital

If the numbers look promising, let us review the deal. We can verify the assumptions, discuss financing options, and provide preliminary terms, all at no cost and with no obligation to proceed.

DSCR Refinance Calculator FAQs

Does the calculator reflect actual underwriting?

The calculator is an estimation tool built on Ridge Street Capital's program parameters: 75% LTV ceiling for cash-out refinances, DSCR calculated as gross monthly rent divided by full PITIA, 30-year fully amortizing loan structure, and origination starting at 0%. Actual loan terms depend on the appraisal, credit profile, and underwriting conditions. Use the calculator to screen deals and size the cash-out.

Can I run the calculator for a property held in an LLC?

Yes. Rental property refinances at Ridge Street Capital close in both personal name and LLC ownership, and the qualification criteria are the same in either structure. For the full explanation of how the loan is structured under an entity, see the DSCR loan for LLC guide.

Does the LTV ceiling change for short-term rentals?

The 75% LTV ceiling applies to all DSCR refinances, including Airbnb and VRBO properties. Short-term rental income is underwritten using AirDNA market projections rather than actual booking history, which means properties without an established rental record can still qualify. For more on how STR properties qualify, see the DSCR loan for Airbnb guide.

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