Free Tool
DSCR Calculator
Calculate your Debt Service Coverage Ratio instantly. No email required.
Property & Loan Details
$2,200
$500$15,000
$280,000
$50,000$3,000,000
7.500%
3.000%14.000%
30 years
15
20
25
30
35
40
$3,200
$0$25,000
$1,600
$0$12,000
$0
$0$1,500
0.93
DSCR Ratio
Below threshold — may not qualify
Monthly Breakdown
Gross Rent$2,200
Principal & Interest-$1,958
Taxes-$267
Insurance-$133
Total PITIA$2,358
Net Cash Flow-$158/mo
Improve Your DSCR
- Increase rent or add income (ADU, short-term rental)
- Larger down payment to reduce loan amount
- Interest-only period lowers PITIA
- Shop insurance for lower premiums
What Is DSCR?
The Debt Service Coverage Ratio measures whether a rental property's income covers its debt obligations. Lenders use DSCR to qualify investment property loans without requiring personal income documentation like tax returns or W-2s.
A DSCR of 1.0 means the property's rent exactly covers PITIA (principal, interest, taxes, insurance, and association dues). Most lenders require a minimum DSCR of 1.0–1.25, with better rates available at higher ratios.
DSCR loans are ideal for real estate investors, self-employed borrowers, and anyone who wants to qualify based on the property's performance rather than personal finances.