DSCR Refinance Calculator

The formulas

New loan amount = Current balance + Cash out. New monthly P&I is a standard amortizing payment: New Loan × r ÷ (1 − (1 + r)⁻ⁿ), where r is the new monthly rate and n is the number of monthly payments over the new term. Add property tax, insurance and HOA to get the new PITIA, and divide gross monthly rent by that PITIA for the new DSCR — the same ratio explained in full on the DSCR glossary page.

Break-even on closing costs = Closing costs ÷ Monthly payment reduction, in months. This only applies when the new payment is lower than the old one. A cash-out refinance that raises the payment to pull equity out is not trying to break even on payment — it is a different decision, weighed against what the cash is used for.

Net cash to borrower = Cash out − Closing costs. A negative result means the closing costs exceed the cash taken out, and the borrower brings money to closing rather than receiving it.

To check whether the new rent still clears a lender's DSCR floor before you apply, run it through the DSCR ratio calculator. For the mechanics of pulling equity out of a rental more generally, see cash-out refinance and seasoning period — most lenders require a minimum hold time before a cash-out refinance is available.