Calculator · Investors
DSCR calculator
This runs the ratio exactly as a lender does, then adds the part they leave out: what the property does to your bank account once vacancy, maintenance and management are paid. Both numbers matter, and they are frequently not the same story.
How do you calculate DSCR?
Divide the property's gross monthly rent by its monthly PITIA — principal, interest, taxes, insurance and association dues. A result of 1.00 means the property exactly covers its own debt. Lenders reserve their best pricing for 1.25 and above.
Debt-service coverage ratio
0.00
—
- Principal & interest$0
- Property taxes$0
- Insurance$0
- HOA$0
- Total PITIA — the denominator$0
Where the rent goes
Lenders compute DSCR as gross rent divided by PITIA (principal, interest, taxes, insurance and association dues). Most use the lower of the lease or a market rent schedule, and short-term-rental income is treated differently again. Vacancy, maintenance and management are your real-world costs — they are excluded from the ratio a lender will run but included in the cash-flow figures here.
Questions about this calculator
What DSCR do lenders require?
A ratio of 1.25 or higher reaches the best pricing and loan-to-value. Between 1.00 and 1.24 the property covers its own debt service and is approvable with a modest rate add-on. Below 1.00 is still placeable with a larger down payment.
Does DSCR include vacancy and maintenance?
No — and that is the trap. The lender's ratio is gross rent divided by PITIA only. Vacancy, maintenance and management are real costs that the ratio ignores, so a deal can qualify on paper and still cost you money monthly. This calculator shows both.
What rent do I need to qualify for a DSCR loan?
Enough to cover PITIA at the lender's minimum ratio. This calculator works it out for you, and also shows the down payment that would reach 1.25 at the rent the property currently earns.
Where this applies
Related loan programs
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