DSCR calculator
Debt service coverage ratio is the rent divided by the full monthly payment. DSCR lenders qualify the property on this number instead of your income.
Your inputsNothing is saved or sent. Payment uses a standard amortization formula.
How to read it
A DSCR of 1.00 means the rent exactly covers principal, interest, taxes, insurance and HOA. Above 1.00 the property pays for itself on paper; below it, you cover the gap. Many DSCR programs want at least 1.00 to 1.25 for their best pricing, some will lend below 1.00 with a larger down payment or a higher rate, and most use the lower of the lease rent or the appraiser's market rent. Each lender sets its own cutoff.
To raise the ratio you can lower the loan amount, extend the term, use an interest-only period or document higher rent. The calculator shows the rent that would be needed to reach 1.00 and 1.25 at your inputs.
An illustration, not a loan offer or a statement of any lender's terms. See disclaimers.
Questions people ask
What is DSCR on a rental property loan?
DSCR, debt service coverage ratio, is the property's monthly rent divided by its full monthly payment: principal, interest, taxes, insurance and HOA. A DSCR of 1.00 means the rent exactly covers the payment. DSCR lenders qualify the property on this number instead of the borrower's personal income.
What DSCR do lenders require?
Many DSCR programs want at least 1.00 to 1.25 for their best pricing. Some lend below 1.00 with a larger down payment or a higher rate. Most use the lower of the lease rent or the appraiser's market rent, and each lender sets its own cutoff.
How do I raise my DSCR?
Lower the loan amount with a larger down payment, extend the term, use an interest-only period, reduce taxes or insurance costs, or document higher market rent. The calculator shows the rent needed to reach 1.00 and 1.25 at your inputs.