DSCR Calculator
Check the debt-service coverage ratio on an investment property: rent against principal, interest, taxes, insurance and HOA, plus the monthly cash flow left over.
The property
Per month.
Running costs
Per year.
Per year.
Per month.
Share of gross rent set aside.
Per year.
Per year.
The financing
Illustrative — not a quoted rate.
Debt-service coverage ratio
0.89
Net income does not cover the debt service
Lenders set their own minimum ratio and price against it. This page does not know any lender's thresholds — ask one.
Bars above the line are money in, bars below are money out. Each bar is labelled on the axis.
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A calculator cannot see your credit file, your assets or the property. A loan officer can.
Jeremy personally reviews every request. 60-minute response times during operating hours.
How to use the dscr calculator
Enter the property value, the number of units and the monthly rent for each unit.
Set the down payment (or loan-to-value), interest rate and origination fee.
Add property taxes, insurance, HOA dues, utilities you pay, maintenance and a vacancy allowance.
Read the DSCR, monthly cash flow, cap rate, cash-on-cash return and cash needed to close.
Terms used in this calculator
- Debt Service Coverage Ratio (DSCR)
- The property's rental income divided by its monthly debt payment. A DSCR of 1.0 means the rent just covers the payment; above 1.0 means it covers it with room to spare.In the glossary : Debt Service Coverage Ratio (DSCR)
- Debt service
- The monthly loan payment the property has to cover: principal, interest, taxes, insurance and HOA dues, often called PITIA.
- Net operating income (NOI)
- Rental income minus operating costs such as taxes, insurance, maintenance, utilities and vacancy, before the mortgage payment.
- Gross rent
- Total rent from all units before any expenses or vacancy.
- Vacancy allowance
- A share of rent set aside for months when a unit is empty or between tenants.
- Cap rate
- Net operating income divided by the property value. It shows the property's return as if you bought it with cash.
- Cash-on-cash return
- Yearly cash flow divided by the cash you put into the deal. It shows the return on the money you actually invested.
- Non-QM loan
- A loan outside standard qualified-mortgage rules, such as a DSCR loan that qualifies on the property's rent instead of your personal income.In the glossary : Non-QM loan
Frequently asked questions
Many DSCR lenders look for a ratio of at least 1.0, and some prefer 1.25 or more for their best pricing. Programs vary, and some allow lower ratios with a larger down payment, so Jeremy can match the property to the right lender.
Generally no. DSCR loans qualify mainly on the property's rental income compared with its payment, which is why they suit self-employed investors and people with several properties. Credit score, down payment and reserves still matter.
Lenders usually use the lower of the current lease rent and the appraiser's market rent estimate. If the property is vacant, the appraiser's market rent is typically used.
Units aren't rented every month of every year. Setting aside part of the rent for vacancy gives you a more realistic cash flow, even if the lender's DSCR uses full rent.
Cap rate measures the property's income against its value, ignoring financing. Cash-on-cash return measures your yearly cash flow against the cash you invested, so it reflects your loan terms.
Some DSCR programs accept short-term rental income, often using an industry rent estimate or a rental history, while others only accept long-term leases. Local HOA and city rules also matter, so check them before buying.
More questions? See the full FAQ or request a personalized quote.