REI Utility
US Real Estate Tools
Ad · top
Investors

DSCR Calculator

DSCR (Debt Service Coverage Ratio) is how investor lenders qualify rental property loans. Your W-2 income doesn't matter — only whether the property pays for itself.

$
$
$
$
$

You might also need

Sponsored links. We may earn a commission at no extra cost to you.

How to use this calculator

  1. Enter the monthly rent (or appraised market rent).
  2. Enter the monthly mortgage principal & interest.
  3. Add insurance, property tax, and HOA fees monthly.
  4. We'll compute your DSCR ratio.

What your results mean

DSCR = Monthly Rent ÷ Monthly PITIA. A ratio of 1.0 means the property exactly breaks even. Most DSCR lenders want 1.25 or higher. Above 1.5 unlocks the best rates.

How to qualify for a DSCR loan

  • Use realistic, market-supported rent — lenders will appraise it.
  • Push down payment to 25%+ — improves DSCR and lowers your rate.
  • Buy in cash-flowing markets (Midwest, parts of South) where rent supports the loan.
  • Improve credit to 720+ for the lowest DSCR loan rates.
  • DSCR loans don't have personal income limits — perfect for self-employed investors.

Frequently asked questions