DSCR Calculator
Calculate the debt service coverage ratio for a rental property loan (rent ÷ PITIA) or a commercial loan (NOI ÷ debt service), plus monthly cash flow and the largest loan that hits your target DSCR. Free, no sign-up.
What is DSCR?
The debt service coverage ratio compares a property's income to its loan payments. A DSCR of 1.0 means the income exactly covers the payment; 1.25 means income is 25% more than the payment. Lenders use it to decide whether a property can carry its own debt.
- Rental DSCR loans: DSCR = monthly rent ÷ monthly PITIA. $2,400 rent ÷ $1,920 PITIA = 1.25.
- Commercial loans: DSCR = net operating income ÷ annual debt service. $66,000 NOI ÷ $55,000 debt service = 1.20.
DSCR ranges and what lenders do with them
| DSCR | What it means | Typical lender response |
|---|---|---|
| Below 1.00 | Income doesn’t cover the payment | No-ratio programs only, stricter terms |
| 1.00 – 1.19 | Break-even to thin cushion | Many DSCR lenders, often higher rate or lower LTV |
| 1.20 – 1.24 | Healthy cushion | Most DSCR and many commercial lenders |
| 1.25 and up | Strong coverage | Best pricing and highest loan-to-value |
Commonly cited ranges; every lender sets its own minimums and pricing.
DSCR loans and personal income
DSCR loans qualify the property instead of the borrower's paycheck, which is why self-employed investors use them. Conventional investment property loans do the opposite: they look at your debt-to-income ratio and documented income. Private lenders often want both: the property's coverage and a look at the borrower's real cash flow, which is where a bank-connected income report helps. Once the property is leased, the rent-to-income calculator and a free rental verification help you pick a tenant who keeps the rent coming.
Frequently asked questions
How do you calculate DSCR for a rental property loan?
For investor DSCR loans, divide the monthly rent by the monthly PITIA payment: principal, interest, property taxes, insurance, and any HOA dues. $2,400 rent against a $1,920 PITIA payment is a DSCR of 1.25.
What is a good DSCR?
Many lenders look for 1.25 or higher, meaning income is 25% more than the payment. DSCR loans for rental property are often available from about 1.0, and some lenders offer no-ratio loans below 1.0 at stricter terms. Commercial lenders commonly want 1.20 to 1.35.
What is the difference between the two DSCR formulas?
Residential DSCR loans usually compare gross rent to the monthly PITIA payment. Commercial loans compare net operating income, which is income after vacancy and operating expenses, to annual debt service. The commercial method subtracts more costs, so it produces a lower ratio for the same property.
Does a DSCR loan require proof of income?
Usually not personal income. DSCR loans qualify the property’s income instead of the borrower’s, which is why they’re popular with self-employed investors. Lenders typically still check credit, reserves, and the lease or an appraiser’s market rent estimate.
How can I raise my DSCR?
Borrow less or put more down, buy down the interest rate, choose a longer term or interest-only period, raise rent to market, or lower taxes, insurance, or HOA costs where possible.
Lending to an individual borrower?
See their estimated income, deposit history, and balances straight from their bank, with no document chasing and no credit pull. Reports as low as $5 each.
See how it works for lenders