DSCR Calculator

DSCR stands for Debt Service Coverage Ratio, and it's the number that decides whether an investment property qualifies for a DSCR loan. It's simple: the property's monthly rental income divided by its total monthly payment. A DSCR of 1.0 means the rent exactly covers the payment. Above 1.0 means it cash-flows. This calculator gives you that ratio so you know where a property stands before you apply.

A DSCR of 1.0 is the common baseline for approval, the rent covers the full payment (principal, interest, taxes, insurance, HOA). At 1.25 or higher, you're in strong territory and typically get better pricing. Below 1.0, the property doesn't fully cover itself, which some programs still allow with a larger down payment or reserves, but it's harder. The higher your ratio, the better both your approval odds and your rate.

Here's a lever most lenders don't offer: for short-term rental properties, we can qualify using projected short-term rental income supported by AirDNA data, not just the lower long-term lease rate. A property that looks marginal at 0.95 on a long-term lease might come in at 1.4 using short-term rental projections, which can transform a borderline deal into a clear approval with better terms. If you're buying in a vacation or short-term rental market, this is a real edge. Our DSCR loan page and the article on how DSCR loans work explain the full picture.

The reason this ratio matters so much: DSCR loans qualify you on the property's numbers, not your personal income. No tax returns, no W-2s, no personal debt-to-income calculation. For investors who write off heavily or already own multiple properties, that's the difference between being stuck and being able to grow. The DSCR requirements guide covers what else you need beyond the ratio.