DSCR Stress Test Calculator
Does your deal survive reality? Find out before you submit.
INVESTOR-GRADE TOOL
The Federal Reserve interest rate data shows that 30-year mortgage rates have moved more than 3 percentage points in a single 18-month period — which is exactly why the DSCR stress test models a 1% rate increase alongside a 10% rent drop as a realistic combined scenario.
Combined Stress Result
DSCR Ratio
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Enter deal numbers below
Baseline NOI
$0
Monthly Payment
$0
Baseline DSCR
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Annual Debt Service
$0
Baseline Numbers
Typically 5%
Typically 8%
Tip: Copy these from your Deal Filter or enter them fresh. Use real numbers—optimism kills deals.
Stress Test Assumptions
Try 8–10%
25% is conservative
20% post-reassessment
Tests market softening
For refinance scenarios
Adjust these to match your market or lender requirements. Defaults represent common real-world pressure.
Why this matters: Lenders stress-test exactly like this before approval. If your deal only works under perfect conditions, the lender will kill it.
Stress Test Results
| Scenario | NOI | Debt Service | DSCR | Status |
|---|
Stress Test Verdict
Enter your deal numbers above.
Prepayment Penalty Guidance
Match the loan structure to the exit strategy. Wrong structure = avoidable penalty on refinance or sale.
Choose an exit timeline to see the recommendation.
Stress-Test Warning
Combined stress results will appear here.
Heavy prepayment penalties reduce flexibility when the deal gets thin.
Vacancy Break-Even
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How much vacancy before DSCR hits 1.0
Rent Drop Break-Even
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How much rent can fall before DSCR hits 1.0
How to Read Results
DSCR Stress Reference
- 1.25+ — Strong. Deal absorbs surprises. Proceed with confidence.
- 1.10 – 1.24 — Marginal. Thin margin for error. Have reserves ready.
- 1.00 – 1.09 — Weak. Any variance breaks it. Renegotiate price or walk.
- Below 1.0 — Fails. Do not submit at current terms.
Row 7 (Combined Stress) is the most important. It shows what happens when multiple problems hit at once. If your break-even vacancy is 35% but the market runs 15–20%, you have room. If it's 5%, you're fragile.