DSCR Calculator
Find the debt service coverage ratio on a rental property and see whether the rent supports the loan you want.
How DSCR Loans Use This Ratio
A DSCR loan qualifies an investment property on its rent instead of your personal income. The lender divides the monthly rent by the full monthly payment, including principal, interest, taxes, insurance, and HOA dues. A ratio of 1.00 means the rent exactly covers the payment.
Enter the rent, price, down payment, and rate. The calculator shows your ratio, your monthly cash flow, and the rent or loan amount needed to reach common thresholds. Try a larger down payment or an interest-only payment to see how each one changes the result.
Example: A $600,000 rental with 25% down has a $450,000 loan. At 7.25% for 30 years, principal and interest are about $3,070. Adding $625 in taxes and $150 in insurance brings the payment to $3,845. With rent of $4,000, the DSCR is 4,000 divided by 3,845, or 1.04.
Common Questions
What DSCR do I need to qualify?
Most lenders look for 1.00 or higher and offer better pricing at 1.25 and above. Some programs accept ratios below 1.00 with a larger down payment.
Do I need tax returns or pay stubs for a DSCR loan?
No. DSCR loans qualify on the property’s rent, so personal income documents are not required. Lenders still review your credit, down payment, and cash reserves.
Which rent does the lender use?
Usually the lower of the current lease and the market rent on the appraiser’s rent schedule. For short-term rentals, some lenders use documented income history or a market rent analysis.