Your scenario
This is not a quote; test any rate.
Yearly amount; we divide by 12.
Yearly amount; we divide by 12.
Leave blank if none.
The coverage ratio you want to solve for, alongside break-even.
Results
Fill in the fields to see your result; it updates as you type.
This calculator is for educational purposes only and does not constitute a loan approval, pre-qualification, commitment to lend, or quote of rates or terms. Actual qualification is determined by full underwriting, including an appraisal with a market rent analysis (Form 1007) or executed lease where applicable. Program guidelines vary by scenario. Loancutters Inc. dba Evoque Lending, NMLS #337415, CA DRE #01521538. Equal Housing Opportunity.
How to read the result
You get two numbers side by side. The break-even rent is the floor: the rent at which the property exactly covers its full monthly payment; a coverage ratio of one, with nothing to spare. The target figure adds the cushion you chose, showing the rent that would put comfortable daylight between income and obligation.
The real move is to hold both numbers up against honest market rent for the property. If market rent clears the target figure, the deal has breathing room. If it barely reaches break-even, you're depending on everything going right; and the useful discovery is making that visible before you commit, not after.
What lenders actually use
Underwriting won't use your rent estimate directly. For long-term rentals, programs typically look to an appraiser's market rent analysis or an executed lease, and short-term rental income is documented by its own methods. The coverage cushion a program actually requires also varies by scenario; the target here is your own editable assumption, useful precisely because you can test how sensitive the required rent is to it.
If market rent in your area lands between your break-even and target figures, the scenario may still have paths forward; structure changes move the payment, and the required rent with it. Guidelines vary; contact us to talk it through.
Common questions
How do I find realistic market rent to compare against?
Look at active and recently leased comparables for the same bedroom count and condition in the immediate area, and be honest about seasonality. Underwriting will rely on an appraiser's rent analysis, so a conservative comp-based figure is the best preview.
What if market rent is below the break-even figure?
At that rent, the property doesn't cover its own payment and the difference comes from you each month. That can still fit some strategies; value-add plans, expected rent growth; but it should be a deliberate choice, not a surprise.
Why solve for a target above break-even at all?
Break-even leaves zero margin for vacancy, repairs, or a tax increase. A cushion above one absorbs those bumps, which is why both investors and lending programs think in terms of coverage rather than exact break-even.
Which payment inputs should I use if I don't have a loan yet?
Use the loan details you're considering and test a few rates; the rate field is deliberately yours to fill. Watching the required rent move as you change the structure is the fastest way to understand the deal's sensitivity.