DSCR calculator
The debt service coverage ratio (DSCR) divides a rental property's monthly rent by its full monthly housing payment: principal, interest, taxes, insurance and HOA dues. A ratio of 1.00 means rent exactly covers the payment. Enter your numbers to see the ratio lenders look at.
How lenders use the ratio
A DSCR loan qualifies an investment property on its own cash flow rather than your personal income. Each lender sets its own minimum ratio and its own way of measuring rent and payment, so treat this result as a starting point. For the full explanation, read DSCR ratio explained and the DSCR loans guide.
Common questions
What counts as rent in a DSCR calculation?
Lenders commonly use the lower of the current lease amount or the market rent an appraiser estimates on a rent schedule, though methods vary. For a vacant property or a purchase, the appraiser's market rent estimate is usually the figure used.
What payment does the DSCR formula use?
The monthly housing payment for the property: principal and interest plus property taxes, homeowners insurance and any HOA dues, often abbreviated PITIA. Some lenders also include flood insurance or other recurring property costs.
Is this calculator a loan approval?
No. It shows the ratio for the numbers you enter so you can understand the math. Each lender sets its own minimum ratio and calculates rent and payment its own way, and a licensed loan officer confirms what applies to your property.