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Free Commercial DSCR Mortgage Calculator – Investment Property Analysis

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C

Conventional

DSCR ≥ 1.25×

DSCR 0.00×
Stress DSCR 0.00×
NOI $0
Debt Service $0/mo
💰 Income
💡 Broker Tips
🌙 Late Night Broker Mode
📝 Notes
🏢 Property Details
📋 Rent Roll
Unit Qty Unit / Income Type Rent Frequency Parking Frequency Notes Annual ($)
TOTAL GROSS ANNUAL POTENTIAL INCOME $0.00
📉 Vacancy & Collection Loss
EFFECTIVE GROSS INCOME (EGI) $0.00
💸 Operating Expenses
💡 Broker Tips
🌙 Late Night Broker Mode
📝 Notes
💸 Operating Expenses
Expense Category Amount Frequency Annual ($) Notes
TOTAL OPERATING EXPENSES $0.00
🔧 Replacement Reserve
NET OPERATING INCOME (NOI) $0.00
🏦 Mortgage & Results
💡 Broker Tips
🌙 Late Night Broker Mode
📝 Notes
📝 Mortgage Input
🏢 Property Details
⚙️ Additional Options
📊 Stress Test
💼 Acquisition Costs
📊 Your Results
Your Monthly Payment
$0.00
Semi-Annual over 30 years
C

Lender

Conventional

Down Payment
$125,000
Mortgage
$375,000
Rate
6.00%
LTV
75%
Annual Debt
$0.00
DSCR
Min: 1.25×
✓ CONVENTIONAL
0.00×
Stress Test
Min: 1.10×
✓ CONVENTIONAL
0.00×
Down %
25%
LTV
75%
Loan-to-Value
Soft Costs
$0
Closing Costs
Cash to Close
$0
Total Required
📈 NOI Waterfall
Gross Annual Income $0.00
Less: Vacancy & Loss $0.00
Effective Gross Income $0.00
Operating Expenses $0.00
Replacement Reserve $0.00
NET OPERATING INCOME $0.00
🏦 Debt Service
Monthly Payment $0.00
Annual Debt Service $0.00
Annual Cash Flow $0.00
Monthly Cash Flow $0.00
💼 Cash to Close
Down Payment $0.00
Closing & Soft Costs $0.00
Total Cash Required $0.00
📊 Investment Returns
Cap Rate
0.00%
NOI / Purchase Price
Cash-on-Cash
0.00%
Cash Flow / Cash Invested
Debt Yield
0.00%
NOI / Loan Amount
Break-Even Occ.
0.00%
Min. occupancy to break even
GRM
0.0×
Price / Gross Annual Rent
OpEx Ratio
0.00%
Expenses / Gross Income
Price / Unit
$0
Comparables benchmark
Payment Type
Blended
P+I or Interest Only
⚡ Stress Test Scenarios
Scenario DSCR Result Classification
Current Rate -- -- --
Rate + 1% -- -- --
Rate + 2% -- -- --
Income -10% -- -- --
Combined (Rate+2% & Income-10%) -- -- --
Generates a professional 4-page PDF report
💰 Income Tab - Your Property's Revenue

🎯 What This Tab Does

This is where you tell the calculator how much money your property makes. Every unit, every parking spot, every dollar of rent goes here. The calculator adds it all up and subtracts vacancy to give you your Effective Gross Income (EGI) - the real income your property generates.

⚡ Step-by-Step Guide

1 Name Your Property

Enter the address or name at the top. This shows on your printed Deal Synopsis report - make it look professional for lenders.

2 Build Your Rent Roll

Click "Add Unit" to create rows. For each row: pick the unit type, set how many identical units (Qty), enter the rent, and pick if it's monthly or annual. Got 5 identical 1-bedrooms at $1,500/mo? One row, Qty = 5.

3 Don't Forget Parking!

Each row has a parking column. If tenants pay $100/month for parking, add it here. Parking income boosts your DSCR and lenders love seeing extra income sources.

4 Set Your Vacancy Rate

No building is 100% full all the time. The calculator defaults to 5% vacancy (industry standard). Lenders always apply a vacancy factor - even if your building is currently full. This gives you your EGI.

📊 What the Numbers Mean

TermPlain EnglishExample
GAPITotal rent if every unit is rented and everyone pays$200,000/yr
V&C LossMoney you lose to empty units + tenants who don't pay$10,000 (5%)
EGIWhat you actually expect to collect - this feeds the next tabs$190,000/yr

💡 Pro Tip: Click any green ? button next to a field for a detailed explanation of that specific item. Turn on "Broker Tips" to make all the ? buttons glow so they're easy to find!

💸 Expenses Tab - What It Costs to Run Your Property

🎯 What This Tab Does

Here you enter every cost of owning the property - taxes, insurance, utilities, management, repairs, and more. The calculator subtracts these from your EGI (from the Income tab) to calculate your Net Operating Income (NOI). NOI is THE number lenders care about most.

⚡ Step-by-Step Guide

1 Review the Pre-Loaded Expenses

We've already added the 7 most common expenses every property has: property tax, insurance, heating, electricity, repairs, management, and landscaping/snow. Just fill in the amounts.

2 Enter Dollar Amounts

Type the amount and pick the frequency. Property tax = $6,000 annually. Hydro = $200 monthly. The calculator converts everything to annual automatically so it can calculate your NOI.

3 Set Your Replacement Reserve

This is money set aside each year for big repairs like a new roof or furnace. Think of it as a savings account for the building. $750/unit/year is standard. Lenders REQUIRE this - it's a mortgage condition.

4 Check Your NOI at the Bottom

The green banner shows your NOI = EGI minus all expenses minus reserves. This is the profit before mortgage payments. A higher NOI means a stronger deal and better DSCR.

📊 Typical Canadian Expense Benchmarks

ExpenseTypical RangeFrequency
Property Tax1-2% of assessed valueAnnual
Insurance$500-$2,000/unit/yearAnnual
Utilities$100-$300/unit/monthMonthly
Management4-8% of EGIMonthly
Repairs$500-$1,500/unit/yearAnnual
Snow & Landscaping$2,000-$5,000/yearMonthly

🚨 Common Mistakes to Avoid

❌ Don't include mortgage payments - that's NOT an operating expense. Debt service is calculated in the Mortgage tab.
❌ Don't forget management fees - even if you self-manage, lenders assume 4% because the next owner will hire a manager.
❌ Don't skip the reserve - CMHC makes this a mortgage covenant. Skipping it flags your analysis as amateur.

💡 Pro Tip: Ask the seller for their last 2 years of T2 financial statements. Real expense data from actual operations beats estimates every time. Lenders will verify your numbers!

🏦 Mortgage & Results - Where the Deal Comes Together

🎯 What This Tab Does

This is your command centre. Enter the mortgage details on the left, and watch the entire deal analysis update in real time on the right. The DSCR ratio tells you which lenders will finance this deal, and the results show you exactly how the numbers work.

⚡ How to Read the Results

1 The Hero Card (Top)

Shows your monthly payment, which type of lender you qualify for (C = Conventional, A = Alternative, H = High-Risk, P = Private), your down payment, mortgage amount, rate, and LTV at a glance.

2 DSCR & Stress Test Cards

DSCR = your property income ÷ mortgage payments. Above 1.25× = conventional lender territory. The Stress Test checks what happens if rates go up 2% - lenders require this to pass too!

3 NOI Waterfall, Debt Service, Cash to Close

Three cards showing how money flows: income → expenses → NOI (left card), mortgage payments and annual cash flow (middle card), and exactly how much cash you need to close the deal (right card).

4 Investment Returns

Eight key metrics investors and lenders look at. Cap Rate tells you the return without financing. Cash-on-Cash tells you your actual return on the cash you invested. These help you compare deals.

🏦 Understanding DSCR - The Most Important Number

DSCR = NOI ÷ Annual Mortgage Payments
Think of it this way: if your property makes $100,000/year and your mortgage costs $80,000/year, your DSCR is 1.25× - meaning the property earns 25% more than it needs to pay the mortgage. Lenders love that cushion.

≥ 1.25×
Conventional - Best rates
≥ 1.10×
Alternative - Higher rates
≥ 1.00×
High-Risk - Expensive
< 1.00×
Private - Last resort

📊 Investment Returns - What Each Metric Tells You

MetricIn Plain EnglishGood Target
Cap RateReturn if you bought with no mortgage (all cash)4-8%
Cash-on-CashYour actual annual return on the cash you put in8-12%+
Debt YieldHow safe the lender's money is (NOI ÷ loan)9%+
Break-EvenMinimum occupancy to cover all costs + mortgage75-85%
GRMHow many years of rent to pay back the priceLower = better
OpEx RatioWhat % of income goes to expenses35-50%
Price/UnitPrice divided by number of units - for comparisonsMarket-dependent
Payment TypeBlended (principal + interest) or Interest OnlyBlended preferred

💡 Pro Tip: Play with the numbers! Try changing the interest rate, down payment, or amortization and watch the DSCR update live. A longer amortization (30+ years) lowers payments and boosts DSCR, but some lenders cap at 25 years. Print the Deal Synopsis to share with your lender - it's a professional 3-page report.

MyMortgageMate.ca

Commercial DSCR Calculator

The Easiest Commercial Calculator with the Most Powerful Results - and It's Free

Analyze any multi-unit or commercial property in minutes. Enter your income, expenses, and mortgage details - and get an instant DSCR analysis with lender classification, stress testing, and a professional PDF Deal Synopsis you can hand directly to lenders.

How It Works - 3 Simple Steps

1 Income 💰 → 2 Expenses 💸 → 3 Mortgage & Results 🏦

Each tab illuminates green as you complete it. Follow the arrows across the top of the sheet.

🏦
Instant Lender Classification

Your DSCR ratio instantly tells you which lender tier you qualify for - Conventional, Alternative, High-Risk, or Private. The results panel updates in real time as you type.

📄
Professional PDF Deal Synopsis

One click generates a beautiful 3-page report: income breakdown, expense summary, NOI waterfall, stress test results, investor returns, and a document checklist - ready to hand directly to any lender.

💡
Broker Tips & Help Points

See these glowing green ? buttons next to every field? Click any one for a plain-English explanation. Toggle 💡 Broker Tips to make them pulse so they're easy to spot.

🔬
Built-In Stress Test

Automatically tests your deal at higher interest rates. Rows go green when passing and red when failing - so you know exactly where the deal breaks.

📝
Notes & Frequency Selection

Add notes to each income and expense item - they print directly onto your PDF Deal Synopsis. Select monthly or annual frequency for every line item. Use the 📝 Notes panel for deal-level comments.

🌙
Late Night Broker Mode

Working late? Toggle 🌙 Late Night Broker Mode for a dark, easy-on-the-eyes experience. Every chart, table, and popup adapts automatically.

📋
Pre-Loaded Expenses

The Expenses tab comes pre-loaded with the 7 most common commercial operating costs. Just fill in your amounts and select the frequency - the calculator does the rest.

🔒
100% Free • Zero Data Stored

No sign-up, no paywall, no ads. Nothing is stored - print and take your deal with you because nothing is retained once you leave this page.

Getting started is easy: Fill in the Income tab with your rent roll - set quantities, rents, frequencies, and notes for each unit. Move to Expenses where the most common costs are already pre-loaded. Enter your Mortgage details and watch your DSCR analysis appear instantly. Hit "Print Deal Synopsis" for your lender-ready report.