DSCR Calculator

DSCR stands for Debt Service Coverage Ratio. It's a simple formula: your property's rental income divided by the mortgage payment. If the ratio is above 1.0, the property pays for itself. DSCR loans are for investment properties — they qualify based on the property's income, not yours. No tax returns, no pay stubs, no personal income documentation.

Monthly Gross Rental Income

Monthly Expenses (tax, ins, HOA, mgmt)

Loan Amount

Interest Rate

Loan Term (years)

1.07

Minimum — Limited Options

A 1.0 DSCR means the rent exactly covers the mortgage — no cushion. Some lenders allow this but expect higher rates and larger down payments (typically 25-30%).

DSCR Tiers — What Lenders Look For

1.25+Strong — Best rates, most lenders

1.15–1.24Good — Qualifies with most programs

1.00–1.14Minimum — Higher rates, more down payment← You

0.75–0.99Below break-even — Specialty programs only

Below 0.75Does not qualify — Increase rent or down payment

Net Operating Income

$2,200.00/mo

Monthly Debt Service

$2,046.53/mo

How the math works:

DSCR = Rental Income − Expenses ÷ Mortgage Payment

Example: $3,000 rent − $800 expenses = $2,200 net income. If the mortgage is $1,760/mo, your DSCR is 2,200 ÷ 1,760 = 1.25. The property earns 25% more than the mortgage costs.

Note: This calculator uses principal & interest only. Your lender may include taxes and insurance in the debt service figure, which would lower the ratio. Enter your full monthly expenses (tax, insurance, HOA, property management) in the expenses field for the most accurate result.

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