DSCR Calculator
Does the rent cover the payment?
Slide your numbers and watch the ratio. At 1.0+, the property carries itself — then request the full DSCR Analysis to see how your scenario really fits.
Your DSCR
1.10
Covers Itself
At 1.0+, the property carries its own payment — squarely in DSCR territory.
- Monthly Rent
- $3,800
- Est. Monthly Payment (PITIA)
- $3,468
- — Principal & Interest
- $2,814
- — Taxes + Insurance + HOA
- $654
- Loan Amount
- $412,500
- Down / Equity
- $137,500
Educational estimate only — not a rate quote, loan offer, or approval. Program guidelines vary; a specialist confirms what your scenario actually supports.
How this DSCR calculator works
DSCR — the debt service coverage ratio — is one division problem: monthly rent ÷ total monthly payment. The payment side is the part people get wrong. Lenders don't just count principal and interest — they count PITIA: principal, interest, property taxes, insurance, and HOA dues. A property that looks like a 1.20 on principal-and-interest alone is often a 0.95 once Florida insurance or Texas property taxes join the math.
Worked example: a $550,000 rental with 25% down at a 7.25% rate carries roughly a $2,815 principal-and-interest payment. Add ~$504/month in taxes (1.1%) and $150 insurance and the real payment is about $3,469. At $3,800 rent: 3,800 ÷ 3,469 = 1.10— the property covers itself. Drop the rent to $3,300 and it's a 0.95 — same house, different conversation. That's why the calculator above makes you look at every line of the payment.
What counts as a good DSCR?
| Ratio | Read | What it means for financing |
|---|---|---|
| 1.25+ | Strong | Rent clears the payment with margin — several programs reserve their premium tiers for ratios here (some require 1.20+ to qualify for them). |
| 1.00–1.24 | Covers itself | Squarely in DSCR territory — most programs work here, pricing varies with the cushion. |
| Under 1.00 | Needs structuring | The rent doesn't fully cover the payment — see the five doors below before calling it dead. |
One number worth memorizing: 1.0 is the line where the property pays for itself. Everything above it is cushion; everything below it is a structuring conversation, not necessarily a no.
Under 1.0? Five doors before you walk away
- More down. A smaller loan shrinks the payment — sometimes 5% more down is the whole fix.
- Interest-only. An IO period drops the payment the ratio is measured against; many DSCR programs offer it (first-time investors are sometimes excluded).
- Buy the rate down. Points up front for a lower rate — worth modeling against how long you'll hold.
- No-Ratio DSCR. Some programs require no minimum ratio at all — the property doesn't have to cash-flow on paper. Pricing reflects the risk, but the deal gets done.
- Asset-based qualification. If you hold significant equity in another property plus liquid reserves, some programs convert that strength into qualifying income — cash flow becomes only part of the story.
Which doors your numbers actually open is what the free DSCR Analysis checks — against real program guidelines, not rules of thumb.
DSCR calculator FAQ
How do I calculate DSCR?
DSCR = monthly rent ÷ total monthly payment (principal, interest, taxes, insurance, and HOA — often called PITIA). Example: rent of $3,800 against a $3,300 payment is 3,800 ÷ 3,300 = 1.15. The calculator above does this math live as you move the sliders.
What is a good DSCR ratio?
1.25 or higher is the profile most programs price best — the rent clears the payment with room to spare. 1.00 to 1.24 means the property covers itself and fits most DSCR programs. Below 1.00, the rent doesn't fully cover the payment — options still exist, but the structure matters more.
What if my DSCR is below 1.0?
First: several programs have explicit sub-1.0 tiers (minimums of 0.80 or even 0.75, usually with stronger credit or more down). Beyond that, five doors: a larger down payment, an interest-only period, buying the rate down, No-Ratio DSCR programs that require no minimum ratio at all, and asset-based qualification for equity-rich borrowers. A DSCR Analysis shows which doors your specific numbers open.
What rent figure do lenders actually use?
On a purchase, lenders order an appraiser's market-rent opinion (Form 1007) and compare it to the lease: many programs use the lower of the two, while some allow the higher figure capped near 120% of the lease. On a refinance, the lease plus proof of rent receipts is the norm. Run the calculator with the conservative number to avoid surprises.
Does Airbnb or short-term rental income count?
Many DSCR programs accept short-term rental income — commonly counted at about 75% of documented revenue with a 12-month history, and some programs add a higher minimum ratio or a small LTV reduction for STRs. A few programs don't allow STR income at all. It's program-specific — exactly the kind of detail a DSCR Analysis checks against real guidelines.
Is using this calculator a loan application?
No. The calculator is a free educational tool and the DSCR Analysis is a free review of your scenario by a specialist — neither is a loan application, and neither affects your credit. If you move forward, any loan application happens later with a licensed loan originator.
The calculator estimates. The Analysis verifies.
Enter the property address and get the full picture — estimated value and market rent pulled automatically, your DSCR and LTV computed, and a specialist's read on which programs fit. Free, about 30 seconds.
Ready to get started?
Request your free DSCR Analysis in about 30 seconds — or talk it through with a specialist first. No pressure, no obligation.