Rent ÷ PITIA
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Enter the building's total monthly rent, the loan amount and a rate from your own quote. Taxes and insurance are optional but matter a lot in Texas, so put them in.
How to use the results
Rent ÷ PITIA divides gross monthly rent by principal, interest, taxes, insurance and any association dues. Many residential-style DSCR programs use a version of this. NOI ÷ annual P&I subtracts operating costs first, such as owner-paid utilities, repairs, management, a vacancy allowance and reserves. Many small-balance multifamily programs use a version of this, and it is usually the lower number.
The rate field is blank on purpose. We don't list pricing on this site; use a rate from a real quote so the result reflects your situation. If you don't have one yet, send the scenario and we will show you actual quotes from wholesale lenders.
Inputs that trip people up
- Using the seller's tax bill instead of the likely next bill on your price
- Leaving out windstorm or flood insurance on Gulf Coast buildings
- Forgetting owner-paid water and trash in master-metered buildings
- Using pro forma rents instead of what the leases say today