TCO vs Standard DSCR
Convert standard Gross-Rent DSCR into True Cost of Ownership (TCO) DSCR, which loads CapEx and Maintenance reserves into the denominator.
How to use: set your standard DSCR and the reserve load below. The TCO equivalent and the full conversion ladder update as you drag.
What the same deal looks like with reserves loaded
Two inputs, one number. Drag either slider — the TCO equivalent and its position against the 1.00 floor update instantly.
Estimates are fine — every figure on this page recalculates as you drag.
A 38.89% reserve load sets aside 38.89 cents of CapEx, maintenance, and vacancy reserve for every dollar of PITIA. The 38.89% default is the load at which a 1.25 standard DSCR converts to 0.90 TCO. Raise it for older stock or heavier turnover; lower it for new construction under warranty.
Lenders score the standard number. This is the one that decides whether the property funds its own reserves.
Every standard threshold, at a 38.89% reserve load
The ladder moves with the reserve-load slider. Your current standard DSCR is marked.