DSCR Loan Calculator

DSCR Calculator

Estimate whether your rental property qualifies — no credit pull.

Monthly Rent

Loan Amount

Interest Rate (%)

Loan Term

Monthly Taxes

Insurance + HOA / month

Monthly PITIA

DSCR Ratio

Check Full DSCR Eligibility Call (833) 350-9185

Estimate only. 40-year option reflects interest-only payment; amortizing period payment will be higher. Actual qualification depends on credit, reserves, property type, and lender program. Not a commitment to lend.

How to Use This Calculator

Monthly Rent — Enter the current lease amount, or the market rent from the appraiser’s 1007 form if the property has no tenant yet.
Loan Amount — The amount you plan to borrow (purchase price minus down payment).
Interest Rate — Use today’s quoted DSCR rate. Try the calculation at +1% and +2% to stress-test the deal.
Monthly Taxes — Annual property tax ÷ 12. For a quick estimate, multiply property value by your county’s effective tax rate and divide by 12.
Insurance + HOA — Monthly hazard insurance plus any HOA or condo association dues.

The PITIA total drives your DSCR. Lowering it — through a larger down payment or a property with lower taxes — is the most reliable lever when a deal comes in just under 1.00.

DSCR Qualification Tiers

DSCR Range	Status
1.25 and above	Strong — best pricing available
1.00 – 1.24	Qualifies — standard program pricing
0.75 – 0.99	Below 1.0 — may qualify with larger down payment
Below 0.75	Below program minimum on most standard programs

Some lenders offer “no-ratio DSCR” or DSCR below 1.00 programs with 25–30% down and stronger credit. If your ratio is between 0.75 and 1.00, it’s worth running through a full scenario — a deal that doesn’t work at 20% down may work at 25%.

Frequently Asked Questions

DSCR = Gross monthly rent ÷ total monthly mortgage payment (PITIA). PITIA includes principal, interest, property taxes, insurance, and any HOA dues. A DSCR of 1.00 means rent exactly covers the payment; 1.25 means there’s a 25% cushion. Example: $4,500 rent ÷ $3,632 PITIA = 1.24 DSCR.

Run the DSCR calculation at three rate scenarios: current rate, current rate plus 1%, and current rate plus 2%. If the property still clears 1.00 DSCR at the stressed rate, the deal is structurally sound regardless of where rates move. Also stress-test occupancy: if a short-term rental runs at 65% occupancy instead of projected 80%, does the DSCR still hold above 0.90? If not, you are depending on optimistic assumptions to qualify. Most experienced DSCR investors will not close a deal that requires 80%+ occupancy or today’s exact rate environment to work.

Most standard DSCR programs require a minimum ratio of 1.00. Better rates and terms are typically available at 1.15 and above. Some programs allow DSCR below 1.00 with compensating factors — larger down payment, stronger credit, or additional reserves.

Yes. For short-term rentals (Airbnb/VRBO), enter the projected monthly rent from either your AirDNA data or 12 months of documented rental income history. If the property has no history, lenders will use a market rent estimate from an appraiser. Enter that figure as your monthly rent input.

Ready to Run a Full Scenario?

This calculator gives you a directional read. For a full qualification review — including credit, reserves, property type, and lender program options — talk to a specialist.

Check DSCR Eligibility →

Call or text: (833) 350-9185

Learn more: DSCR Loans for Investors · Bank Statement Income Calculator · All Calculators