DSCR Calculator

Q: What is a good DSCR for a rental loan?

Most DSCR lenders require a ratio of at least 1.0, meaning the rent covers the full payment. A ratio of 1.25 or higher generally unlocks the best rates and leverage. Some programs allow ratios below 1.0 at lower leverage or with reserves.

Q: How is DSCR calculated?

DSCR equals the gross monthly rent divided by the total monthly payment, including principal, interest, property taxes, insurance, and any HOA dues (PITIA). A result of 1.20 means the property earns 20 percent more than its payment each month.

Q: Does a low DSCR mean I can't get a loan?

Not necessarily. A lower DSCR may still qualify at reduced leverage, with cash reserves, or under a no-ratio program. Run your scenario by us and we will tell you what is realistic for your deal.

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Monthly rent$Loan amount$Interest rate%AmortizationyrsMonthly taxes$Monthly insurance$Monthly HOA$

Your DSCR

1.40

Strong

Strong. This ratio typically qualifies for the best pricing.

Principal + interest$1,278

Total payment (PITIA)$1,718

Monthly cash flow$682

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Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

DSCR (debt-service coverage ratio) is how rental lenders decide whether a property pays for itself. It compares the monthly rent to the full monthly payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment; most lenders want 1.0 or higher, and the best pricing usually starts around 1.25.

Common questions

What is a good DSCR for a rental loan?

How is DSCR calculated?

Does a low DSCR mean I can't get a loan?

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