DSCR Calculator
Enter your numbers below to see if your investment property qualifies and what kind of rates you can expect. No login, no credit check, no personal info needed.
Your Deal
Adjust the inputs — results update instantly.
Estimate uses P&I only. Actual lenders may include taxes & insurance (PITIA).
Result Interpretation
Where your DSCR ratio lands tells you what kind of lender programs are available to you — and what kind of pricing you'll see.
Property generates significantly more income than the loan payment. Access to best rates, lowest down payments, most flexible terms.
You qualify with most DSCR lenders. Property covers its own debt. Rates slightly higher than 1.25+ but still plenty of options.
"No-ratio" or low-ratio programs available. May need a larger down payment or stronger credit to proceed.
Property needs higher rents or a larger down payment to qualify. Consider increasing rent or down payment amount.
What Is a DSCR Ratio?
DSCR stands for Debt Service Coverage Ratio. It measures whether a property's rental income covers its loan payment. The formula is simple:
Monthly Rental Income ÷ Monthly Loan Payment = DSCR Ratio
A ratio of 1.0 means the rent exactly covers the payment. Above 1.0 means positive cash flow. Below 1.0 means the rent doesn't fully cover the payment on paper — which affects your loan options.
How Lenders Use DSCR
Unlike conventional loans that look at your W-2 and tax returns, DSCR lenders only care about the property's income. If the property can service its own debt, you qualify — regardless of your personal income, employment status, or how many write-offs you take.
This is why DSCR is the preferred loan type for real estate investors: your personal finances don't disqualify you if the deal makes sense on its own.
What Affects Your DSCR Ratio
- Rental income: Higher rents = higher DSCR. Lenders use either the lease amount or appraised market rent, whichever is applicable.
- Loan amount: Higher loan = higher payment = lower DSCR. A larger down payment directly improves your ratio.
- Interest rate: Lower rate = lower payment = higher DSCR. Comparing multiple lenders can meaningfully shift your ratio.
- Property taxes & insurance: Some lenders include these (PITIA). This calculator uses P&I only for simplicity.
Note: This calculator provides an estimate. Actual DSCR calculations vary by lender — some use P&I only, others use PITIA (principal, interest, taxes, insurance, and association fees). Results here are for reference only and do not constitute a loan offer or approval.
