DSCR Loan Calculator
A DSCR loan qualifies on the property's rent, not your personal income. Enter the rent, loan, and carrying costs to see your debt service coverage ratio, whether it clears your lender's minimum, and the largest loan the rent will support.
Results
Debt Service Coverage Ratio
0.00
Monthly PITIA
$0
Max Loan @ 1.00
$0
DSCR = Monthly Rent ÷ Total PITIA
How to Calculate DSCR (Formula & Example)
DSCR lenders use a simple, rent-based formula — not the net-operating-income version from commercial underwriting. It is just the gross rent divided by the full monthly payment:
DSCR = Gross Monthly Rent ÷ Total PITIA
Worked example
A property rents for $2,400 a month. The $240,000 loan at 7.5% over 30 years runs about $1,678 in principal and interest; add $300 in monthly taxes and $125 in insurance and the full payment (PITIA) is roughly $2,103. Dividing $2,400 by $2,103 gives a DSCR of 1.14 — above the common 1.0 minimum, so the property qualifies, though not yet at the 1.25 tier that earns the best pricing.
What DSCR Do You Need to Qualify?
- Under 1.0: the rent does not cover the payment. Most lenders decline, or require a larger down payment to shrink the loan. A few run sub-1.0 programs at a higher rate.
- 1.0–1.24: qualifies with most DSCR lenders. The standard target, and where a lot of buy-and-hold deals land.
- 1.25+: the sweet spot — typically the best rates and the highest leverage.
Want the monthly payment broken down with a full amortization schedule? Use the mortgage & DSCR payment calculator. Not sure DSCR is even the right product for your deal? Run the Financing Matcher, or compare DSCR lenders side by side.