DSCR Calculator
Calculate your Debt Service Coverage Ratio
This DSCR calculator is provided for informational purposes only and does not guarantee loan approval or qualification. Results are estimates based on user input and do not reflect actual lender terms. For a personalized evaluation or to begin the DSCR loan application process, please contact a licensed mortgage advisor. All loan programs are subject to credit and underwriting approval.
Our Debt Service Coverage Ratio (DSCR) calculator helps real estate investors determine if a rental property’s income is sufficient to cover the property’s loan payments. Lenders use the DSCR as a key metric to qualify borrowers for DSCR loans—a popular financing option that doesn’t require traditional income documentation.
By inputting a few basic details, you can quickly assess whether a property meets typical lender DSCR requirements (often a ratio of 1.0 or higher).
How to use the DSCR Calculator
To get the most accurate result, you’ll need the following information:
- Gross Monthly Rental Income
Include rent paid by tenants or expected market rent. - Monthly Mortgage Payment
Enter your projected or actual monthly payment, including principal and interest. - Other Monthly Property Expenses (optional)
You may include taxes, insurance, and HOA dues to reflect total obligations more accurately.
DSCR Formula
DSCR = Gross Monthly Rent ÷ Monthly Debt Obligations
For example, if your rental income is $2,000/month and your total mortgage payment is $1,600/month, your DSCR is 1.25—meaning your property generates 25% more income than it costs to service the debt.
What’s a Good DSCR?
- 1.0 or higher: Property earns enough to cover loan payments (break-even)
- 1.25 or higher: Preferred by most lenders for risk protection
- Below 1.0: May not qualify without additional reserves or strong borrower profile