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DSCR calculator for rental property loans
DSCR lenders qualify the property instead of your paycheck. See your ratio, the rent you need, and the largest loan the rent supports.
Results
How DSCR lenders calculate the ratio
PITIA = principal & interest + property taxes + insurance + HOA dues (monthly)
DSCR = gross monthly rent ÷ PITIA
Example: rent of $3,000 against a $2,400 PITIA gives a DSCR of 1.25. The rent covers the full payment with a 25% cushion. With the default inputs above ($2,000 of P&I at 7% over 30 years, plus $300 taxes and $100 insurance a month), the loan is about $300,600 and the ratio is exactly 1.25.
Most residential DSCR programs use that simple rent ÷ PITIA version. Commercial lenders, and some DSCR lenders, use net operating income ÷ debt service, which subtracts vacancy and operating costs first and gives a lower number. Both are shown above, so you can see which side of a lender's cutoff you're on either way.
Working backwards: rent needed and maximum loan
If a deal comes up short, there are three levers: more rent, a smaller loan (a bigger down payment), or a lower rate. The max loan line solves for the largest loan whose PITIA still meets your minimum DSCR at this rent, rate and term. If that's smaller than the loan you need, the gap is roughly the extra down payment the deal requires.
Minimums differ by lender and program, and so do rates, reserve requirements and how much of the rent counts (for example, lease rent vs. market rent from the appraisal). Use this to screen deals, then confirm with a real quote.
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FAQ
What is a good DSCR for a rental property loan?
Many DSCR lenders look for 1.0–1.25 or higher, and better ratios usually get better pricing. Some programs accept lower ratios or have no-ratio options on stricter terms. Requirements vary, so ask your lender for their cutoff.
Does DSCR use gross rent or net income?
Most residential DSCR loans divide gross monthly rent by PITIA (principal, interest, taxes, insurance and HOA). Commercial underwriting usually uses net operating income ÷ annual debt service. This calculator shows both.
How can I raise my DSCR?
Lower the payment (larger down payment, lower rate, longer term or interest-only), raise the rent you can document, or cut taxes, insurance or HOA costs where possible. The 'max loan' result shows how much the loan has to shrink.