DSCR loan calculator
Enter rent and the property payment. Get the ratio, and see how lenders often treat that band. This page is the math and the methodology, not a working app.
How this calculator gets the number
DSCR equals qualifying monthly rent divided by monthly PITIA.
Qualifying rent is the lease rent you typed, or market rent if you toggled it. If you enter a vacancy factor, rent is reduced by that percent before the divide.
PITIA is principal, interest, taxes, insurance, and HOA. This page does not add mortgage insurance. DSCR loans are investment-property loans and do not carry borrower-paid MI.
The band notes are market patterns, not an offer and not a AUS finding. Lenders encode their own floors, vacancy rules, and qualifying-rent definitions.
What to enter
Monthly rent, or market rent if the unit is vacant. Principal and interest, taxes, insurance, and optional HOA, each as a monthly amount. An optional vacancy percent applied to rent before the divide. A target DSCR of 1.00, 1.15, 1.25, or a custom floor.
What comes back is the ratio to two decimals, the PITIA sum, pass or fail against the target you picked, and a short note on how lenders often treat that band. The calculator does not output approve or decline, a rate, or a LoanPASS finding. This is arithmetic plus market-pattern notes.
How lenders often treat the band
Below 1.00: the property does not cover the payment on this math. Some programs still allow it with more down payment or reserves. That is a guideline call, not this calculator.
1.00 to 1.14: tight coverage. Many investors want compensating factors or a higher-equity structure.
1.15 to 1.24: a common minimum band. Your investor’s floor may be higher or lower.
1.25 and above: the property covers the payment with room on this math. Other rules (credit, LTV, reserves) still apply.
Worked example: $3,000 rent against a $2,400 payment
Rent $3,000. Principal and interest $1,800. Taxes $400. Insurance $150. HOA $50. PITIA $2,400. DSCR is 3,000 divided by 2,400, which is 1.25.
At a 1.25 target, this example passes the ratio. It can still fail credit, LTV, reserves, or property rules.
For lenders: the ratio is one rule in a DSCR decision
The divide above is the first condition a DSCR program checks, not the last. A full decision also runs LTV bands, reserve months, credit floors, prepay, and investor overlays, and each investor sets those differently. AUS encodes that whole box as rules and returns the finding with the rule that produced each condition.
What is a DSCR loan
DSCR loan requirements
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