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DSCR Loan Calculator

Size a DSCR loan the way lenders do. Enter the property, the loan, and the rent. See PITIA, NOI, and both flavors of DSCR side by side, plus the minimum rent needed to hit your target ratio.

Your deal

Property & loan

$
%

DSCR typically 20-25% minimum

Loan amount
$300,000

Auto-calculated from price and down payment

%

Illustrative, not a quoted rate

yrs
yrs

0 = fully amortizing

Rent

$
Annual gross: $38,400

Expenses

$
$
$

Zero if none

%

% of gross rent

%

% of gross rent

%

% of gross rent

Reporting basis

DSCR

1.22≥ 1.20 (qualifies at most DSCR programs)

Gross monthly rent divided by PITIA. This is the ratio most DSCR lenders price from.

Lender DSCR
1.22
NOI DSCR
1.00

Monthly payment

Principal & interest$2,098
Taxes$400
Insurance$120
Full PITIA$2,618

Rent & cash flow

Gross rent$3,200
Effective rent (after vacancy)$3,040
Operating expenses$936
Net operating income (NOI)$2,104
Monthly cash flow (NOI − P&I)$6
Cash-on-cash return (annual)0.08%

Rent needed for target DSCR

Common minimums: 1.00, 1.20, 1.25

Minimum monthly rent (PITIA basis)
$3,141
vs current gross rent $3,200
Results are estimates based on user inputs and do not represent loan terms, APR, or a financing offer. Pre-filled values are illustrative examples, not available or quoted rates. Actual terms depend on credit, property, program, and underwriting. Every result applies to the entered planning scenario, not an observation period or local market statistic. Replace price, tax, insurance and fee allowances with dated, property-specific figures. Missing inputs are not assumed to be zero.

Keep a free guide for your next step

Keep a free mortgage guide with practical checklists and fillable worksheets. General education, not deal-specific advice.

Download free guide (PDF)
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Frequently asked questions

What is DSCR?
Debt Service Coverage Ratio measures how well the property's rental income covers its mortgage payment. A DSCR of 1.00 means rent exactly covers the payment; 1.25 means rent covers the payment 1.25 times over.
How do DSCR lenders calculate the ratio?
Most DSCR lenders use gross market rent divided by the full PITIA (principal, interest, taxes, insurance, and HOA). This is the 'lender DSCR' shown here. A few lenders use NOI-based DSCR, which subtracts operating expenses from rent before dividing by principal and interest.
What DSCR do lenders typically require?
Most DSCR programs require at least 1.00 to qualify, with better pricing at 1.20 or 1.25 and higher. Some programs allow sub-1.00 DSCR ('no-ratio') at a premium in rate and required down payment.
Do DSCR loans have prepayment penalties?
Usually yes. DSCR loans commonly carry a step-down prepayment penalty for the first 3 to 5 years. Read the note carefully before you lock. This calculator does not model prepay penalties.
Is this an offer to lend?
No. This is an educational calculator. Real DSCR programs vary by lender and require a full application and underwriting.

Related glossary terms

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Related reading

Want the story behind the numbers?

  • HubInvestment property hubHow DSCR fits into a full investor strategy.Read
  • HubNon-QM loansWhere DSCR loans sit in the non-QM market.Read
  • ArticleWhat actually moves mortgage rates (and what does not)Why DSCR rates ride higher than conventional.Read
    Try: Refinance
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