DSCR Loan Calculator for Kentucky Rental Property

A Kentucky investment property has to clear the same debt service coverage ratio every DSCR lender checks — but the numbers that get you there are local. This calculator is pre-loaded with typical Kentucky figures: a median home near $230,000, gross rent around $1,500/month, property tax near 0.86% and insurance near 1.40% of value. Adjust anything to match your deal.

The calculator computes NOI, annual debt service, DSCR, cash flow after debt service, and the largest loan the property would qualify for at a 1.25 ratio. Everything runs in your browser — your numbers are never uploaded.

What is DSCR?

DSCR is the ratio of a property’s net operating income (NOI) to its annual debt service. A ratio of 1.00 means income exactly covers the mortgage; above 1.00 there is cash flow left over, below 1.00 the property loses money before paying the loan.

The formula:

DSCR = Net Operating Income ÷ Annual Debt Service
NOI = Gross Operating Income − Operating Expenses
Annual Debt Service = monthly principal & interest × 12

How Kentucky numbers feed the DSCR

For the example above, annual property tax is roughly $1,978 (0.86% of $230,000) and insurance about $3,220 (1.40% of value). Those two figures are usually the largest operating expenses after property management, so small differences between Kentucky markets move DSCR noticeably.

Debt service comes from the loan amount and rate via standard amortization:

loan amount = purchase price × (1 − down payment %)
monthly P&I = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

What DSCR do lenders require?

Most DSCR lenders require a minimum of 1.20 to 1.25, with this calculator flagging 1.25 as the typical minimum. The “max loan” result shows the largest loan the property’s NOI would still support at that ratio — the quickest way to tell whether a Kentucky deal qualifies.

How to improve your DSCR

Raise income (market or value-add rent, lower vacancy), cut expenses (insurance shopping, appealing tax assessments), or reduce debt service (more down payment, lower rate). For Kentucky investors comparing deals, the “max loan at 1.25 DSCR” figure is the fastest go/no-go check.

Frequently asked questions

What is a good DSCR for a rental property in Kentucky?

The same benchmark applies in Kentucky as everywhere: lenders usually want at least 1.25. Above that is comfortable cushion; 1.20–1.25 is borderline; below 1.00 the rent does not cover the mortgage. Use the calculator above with your actual Kentucky rent and expenses.

Are the Kentucky numbers in this calculator accurate?

They are typical statewide figures used only to seed a realistic example — $230,000 home, $1,500/month rent, 0.86% property tax, 1.40% insurance. Real numbers vary by city, insurer, and assessment, so replace them with your own before relying on the result.

How is NOI calculated here?

NOI = (gross monthly rent × 12 × (1 − vacancy %)) − annual property tax − annual insurance − (monthly HOA × 12) − (monthly repairs × 12) − (property management % × gross annual rent). Debt service and depreciation are not subtracted.

Does this calculator upload my data?

No. All calculations run locally in your browser. The inputs never leave your device — confirm it in your browser’s network tab while editing the fields.