DSCR Calculator

A DSCR calculator compares rental income with the monthly debt service modeled for a property.

This tool shows current-rent and market-rent estimates separately, and compares principal-and-interest payments with interest-only payments. It helps you prepare a scenario, not determine loan approval.

This calculator divides monthly rent by the modeled mortgage payment, taxes, insurance and association dues.

For example, $3,000 of rent divided by $2,500 of monthly housing costs gives a DSCR of 1.20. Lenders can use different qualifying rent or payment assumptions.

Enter a positive loan amount, interest rate and at least one positive rent amount, plus monthly taxes and insurance.

Enter 0 for a cost that does not apply. HOA dues can be blank if none. Property value is optional and shows estimated loan-to-value (LTV); it does not affect DSCR. Choose the loan term and the primary payment assumption.

The rent used for qualification depends on the lender, property and supporting documentation.

This tool keeps current and market rent separate. Positive current rent is shown first when supplied; otherwise positive market rent becomes primary. A blank or zero rent field produces no estimate for that basis. This display rule does not select a lender’s qualifying rent.

No. Rent remaining here is after the mortgage payment, taxes, insurance and HOA—not all property expenses.

Vacancy, maintenance, repairs, management, utilities and other operating expenses are excluded. A positive rent-remaining figure does not establish that the investment will be profitable.

An exact DSCR of 1.00 means the selected rent equals the modeled monthly debt service.

Above 1.00, rent exceeds those housing costs; below it, there is a shortfall. Displayed ratios are rounded, with extra precision near a range boundary. The estimate excludes other operating costs.

A higher DSCR means more rental income relative to the debt service modeled here; there is no universal approval threshold.

The ranges on this page describe the size of the modeled cushion or shortfall. They do not promise eligibility, a rate or a lender’s preferred pricing tier.

Higher taxes, insurance or HOA dues lower DSCR by increasing its denominator.

Enter monthly amounts. Divide an annual tax or insurance bill by 12 before entering it. Check all three costs when comparing properties with similar rents.

Selecting interest-only changes the primary estimate to a payment without scheduled principal repayment.

The comparison disclosure still shows both payment structures. With the same loan and rate, removing scheduled principal reduces modeled debt service, but it does not reduce the loan balance. Lender qualifying treatment and availability may differ.

A lender can use different rent, payment or expense assumptions from those entered here.

Documentation, property type and the program’s treatment of rental income can change the number. Use this estimate to identify which assumptions need to be confirmed for your scenario.

No. This estimate is not a loan approval or a commitment to lend.

The lender’s review also considers its documentation, credit, reserve and property requirements. A ratio above 1.00 describes only the modeled relationship between rent and housing costs.

Review the rent basis, monthly costs, loan amount and payment structure before changing the financing assumptions.

Then include vacancy and operating costs to assess the property itself. A payment change can improve DSCR without making the underlying investment profitable. Ask our team which assumptions or financing approaches are worth examining.