DSCR Loan Calculator
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DSCR Cashflow Instantly
Check If Your Deal Meets DSCR Requirements
Use this DSCR calculator to estimate your DSCR and see how lenders may evaluate your rental property.
Most lenders look for a DSCR of 1.25 or higher. Enter your property’s income and expenses to quickly understand where your deal stands and whether it may qualify for financing.
DSCR Loan Calculator
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What is DSCR and Why it Matters
DSCR (Debt Service Coverage Ratio) measures whether your rental income can cover your loan payments. It’s one of the most important metrics lenders use to evaluate risk and determine whether a deal qualifies for financing.
How DSCR is Calculated
DSCR = Gross Rental Income ÷ PITIA
PITIA = Principal + Interest + Taxes + Insurance + HOA
DSCR is calculated by dividing a property’s gross rental income by its total housing expenses (PITIA), which include principal, interest, taxes, insurance, and HOA dues.
For example, if your property generates $30,000 in annual rental income and your total annual PITIA is $20,700, your DSCR would be 1.45. This means your property generates 45% more income than is needed to cover its total housing costs.
DSCR Interpretation
Here’s how lenders typically interpret DSCR:
- DSCR above 1.25 → Strong cash flow, typically easier to qualify
- DSCR around 1.0 → Break-even, income matches debt
- DSCR below 1.0 → Income may not fully cover loan payments
Explore Our DSCR Loans
Built for real estate investors, our DSCR loans give you the capital to move with confidence. Get competitive rates, flexible terms, and fast approvals for long- and short-term rental strategies.
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DSCR Loans FAQs
This calculator quickly shows whether your deal meets common lender requirements. Enter your income and loan details to estimate your DSCR, evaluate deal strength, and identify where adjustments may be needed before applying.
Most lenders require a DSCR between 1.00 and 1.25, depending on the program. This means your rental income must at least match or exceed your loan payments. Use the calculator to test scenarios and see where your deal stands.
To get the most accurate result, you’ll need:
Gross monthly rental income (actual or projected)
Monthly loan payment (principal and interest)
Taxes (monthly or annual normalized)
Insurance
HOA
Sometimes. A DSCR below 1.0 means the property doesn’t fully cover its debt, but you may still qualify with strong compensating factors like a larger down payment, strong credit, or cash reserves. Adjust your inputs to explore ways to improve your scenario.
