How to use this calculator
A DSCR calculator helps real estate investors understand whether a rental property may support its own mortgage payment. DSCR means debt service coverage ratio. Instead of starting with personal W-2 income, many investor loan programs compare the property’s monthly rental income with the monthly PITIA payment: principal, interest, taxes, insurance, and association dues. A DSCR of 1.00 means the rent equals the housing payment. A DSCR above 1.00 means the rent is higher than the payment; below 1.00 means the property is short on a monthly basis based on the inputs.
Many DSCR lenders prefer 1.00 or higher, and 1.25 or higher is often considered stronger because the property has more cash-flow cushion. Some programs may still consider a ratio below 1.00 with a larger down payment, stronger reserves, or a compensating factor, but pricing and guidelines can change. Short-term rental income may be reviewed differently than a long-term lease. Depending on the program, a lender may use a signed lease, appraiser market rent, or a data service projection for Airbnb-style income.
To improve DSCR, investors usually reduce the loan amount with a higher down payment, find a property with stronger rent, lower taxes or HOA dues, or compare loan terms. This tool is for illustration only and does not replace a full loan review.
For illustration purposes only. Not a rate quote, loan offer, or commitment to lend. Contact us for a personalized quote.