DSCR calculator.
A DSCR loan qualifies on the property, not on you. Enter the rent and the full monthly cost, and this returns the debt service coverage ratio a lender will run on your file. No signup, no credit pull, nothing sent anywhere unless you ask us to price it.
Will the rent cover it?
Most investors price best at 1.0+ DSCR and 75% LTV. Below 1.0 is still doable on select lenders, priced higher. More on how DSCR files are underwritten.
DSCR estimate only. Lenders calculate DSCR as gross monthly rent divided by full PITIA (principal, interest, taxes, insurance, and association dues). Not a commitment to lend; the final ratio and pricing are set by the lender, an appraisal, and a market rent schedule.
What the ratio actually means.
| Your DSCR | What it says | What it usually means for the file |
|---|---|---|
| 1.25 and up | Rent covers the payment with room to spare | Best pricing tier at most lenders |
| 1.00 to 1.24 | Rent covers the payment | Qualifies at most lenders, priced a step back from the top tier |
| Below 1.00 | Rent does not cover the payment | Still doable on select lenders, priced higher, often with more money down |
DSCR is gross monthly rent divided by full PITIA, meaning principal, interest, taxes, insurance and any association dues. Vacancy, management and maintenance are not in the formula, which is exactly why a property can clear 1.0 on paper and still run thin in real life. Underwrite the deal on your own numbers, not on the ratio alone.
If the ratio comes up short.
Lowers the loan, lowers the payment
The most direct lever on the ratio
Removes principal from the payment
Available on many DSCR programs and often the difference between 0.95 and 1.05
Market rent can beat the lease
Lenders use an appraiser's rent schedule, which sometimes reads higher than what the unit rents for today
Reassessment after sale is the usual trap
Run the number the assessor will use next year, not this year's bill
What investors ask.
What DSCR do I actually need?
Most lenders want 1.0 or better, and price best at 1.25. Below 1.0 is still financeable at select lenders with a higher rate or a larger down payment. There is no single industry floor, it moves by lender and by program.
Does a DSCR loan check my income?
No. That is the point of the product. There are no tax returns, W-2s or debt-to-income calculation on a true DSCR file. The lender underwrites the property's rent against its payment, plus your credit and your reserves.
Can I close a DSCR loan in an LLC?
Usually yes, and most DSCR borrowers do. Title in an entity is standard on these programs, unlike conventional financing where it causes problems. Some states treat the loan differently depending on whether the borrower is an entity or a person, so confirm for the state the property is in.
Is a DSCR loan a consumer mortgage?
No. A DSCR loan on a non-owner-occupied rental is business purpose credit, not a consumer mortgage, which is why it is underwritten on the asset and why the disclosures differ. You cannot use one to buy a home you intend to live in.
Does the calculator send my numbers anywhere?
Not on its own. The math runs in your browser. Nothing reaches us unless you use the button below the calculator to ask us to price the scenario, which is the only point at which you hand over a name and an email.
Want the real pricing on that scenario?
Send it over and we will price it across the wholesale panel. No credit pull to start, no application fee.