Last updated: November 5, 2026. A DSCR refinance calculator compares your current investment-property loan with a new loan and estimates the debt service coverage ratio after the refinance. Use it to see whether a new rate, term, or cash-out changes coverage. This is an educational worksheet, not a lender commitment.
Refinancing changes annual debt service. DSCR after refinance equals qualifying income divided by new annual debt service. If income stays the same and the payment falls, DSCR rises. If you cash out and the loan grows, DSCR may fall even when the rate improves.
Educational note: Briefcase is not a lender or broker. Confirm terms with a licensed professional before you refinance.
List current loan balance, rate, remaining term, and monthly principal and interest. List proposed loan amount (rate-and-term or cash-out), new rate, amortization, and whether interest-only.
Keep income definition consistent with how a DSCR lender will underwrite: rent schedule, vacancy factor, or NOI for larger assets. Do not mix personal W-2 income into a property DSCR test unless your product specifically requires it.
Current loan: $320,000 balance, payment $2,100 per month ($25,200 per year). Property qualifying rent income: $30,000 per year. Current DSCR equals $30,000 divided by $25,200 equals 1.19.
New loan: same $320,000 balance, lower rate, new payment $1,850 per month ($22,200 per year). New DSCR equals $30,000 divided by $22,200 equals 1.35. On these simplified numbers, coverage improved because debt service fell while income held flat.
Same income of $30,000. New loan amount $380,000 after cash-out, payment $2,200 per month ($26,400 per year). New DSCR equals $30,000 divided by $26,400 equals 1.14. Even with a better rate than the original loan, a larger balance can reduce DSCR.
Compare closing costs with monthly savings. If costs are $6,000 and you save $250 per month, simple payback is 24 months, ignoring tax effects and opportunity cost. Also check prepayment penalties, seasoning rules, and whether short-term rental income will be accepted on the new product.
Use the DSCR loan calculator page for the base formula, and the DSCR loans guide for product context. Briefcase Studio helps lending and proptech brands explain refinance education without turning content into unauthorized advice.
Briefcase is a media and marketing company, not a lender, broker, or investment adviser. Illustrative numbers show how formulas behave; they are not quotes from a named lender or index. Confirm terms with licensed professionals. Affiliation: Briefcase Studio is the services arm of Briefcase; Square Footage editorial coverage stays independent. Subscribe free at briefcase.email. Studio retainers typically run $3,000 to $6,000 per month at briefcase.email/studio.
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