Free calculator
DSCR calculator
Find out if a rental property qualifies for a DSCR loan. Enter the price, rent, taxes, insurance and loan terms to get your debt service coverage ratio, the monthly PITIA, the rent you need for 1.00x and 1.25x, the largest loan that fits, and what the prepayment penalty would cost. Works for long-term leases and for Airbnb and other short-term rentals.
Cash flow before vacancy and management: a month. Cash to close: .
The payment (PITIA)
The income the lender counts
Rent needed and max loan by DSCR
Prepayment penalty
If you pay off in the year you entered: .
Illustrative estimate from the numbers you entered. Not an offer or commitment to lend; actual terms are set by the lender after underwriting. Business-purpose loans on non-owner-occupied investment property only.
Next step
Want real DSCR terms on this rental?
Send the deal and a person reads it. Your calculator numbers are copied into the form, so there is nothing to retype. If it is a deal the lenders in our network can do, you get an indicative range and a list of what they need. If it is not, we tell you quickly.
- No application fee, no upfront fee, no obligation.
- Business-purpose loans only: investment property held in an LLC or other entity, never owner-occupied.
- Programs available in 40 states.
Easy Lending USA is not a lender or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision.
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What is DSCR?
The debt service coverage ratio (DSCR) compares the income a rental property produces with the payment on its loan. A DSCR loan is qualified on that ratio instead of your personal income or tax returns, which is why it is the usual long-term loan for investors who are self-employed or own several properties.
DSCR = monthly rent ÷ monthly PITIA PITIA = principal and interest + property taxes + insurance + HOA dues
A DSCR of 1.00 means the rent exactly covers the payment. Above 1.00 the property covers its debt with room to spare; below 1.00 it does not.
How to use the DSCR calculator
- Property and loan: purchase price or appraised value and the loan-to-value you are borrowing at.
- Rental income: the monthly rent for a long-term lease, or for a short-term rental the gross annual booking income and the share of it the lender counts.
- Taxes, insurance and HOA: annual taxes and insurance, monthly HOA and anything else in the payment, such as flood insurance.
- Loan terms: rate, amortizing or interest-only, and the prepayment penalty structure on your quote.
What DSCR do you need?
| DSCR | What it usually means |
|---|---|
| 1.25 and above | Strong. The range that usually gets the best leverage and pricing, and the level some higher-leverage programs require. |
| 1.00 to 1.24 | Qualifies on most DSCR programs. The rent covers the full payment. |
| 0.75 to 0.99 | A few programs accept it, with lower leverage and higher pricing. |
| Below 0.75 | Too low for most programs. Put more down, find more rent, or choose a cheaper property. |
Worked example
A $400,000 purchase at 80% loan-to-value is a $320,000 loan. At an example 7.5% rate on a 30-year amortization the principal and interest is about $2,237 a month. Add $400 a month of property taxes and $150 of insurance and the PITIA is about $2,787. With rent of $3,200, the DSCR is 3,200 ÷ 2,787 = 1.15. The rent needed for a 1.25 DSCR on the same loan is about $3,484.
DSCR for Airbnb and short-term rentals
For a short-term rental, lenders use either 12 months of actual booking history or a projection of the property’s income, and many count only 75–80% of projected gross income. Switch the calculator to Short-term rental and enter the gross annual income and the share your lender counts. See short-term rental loans for the program.
Prepayment penalties on DSCR loans
Most DSCR loans carry a prepayment penalty that steps down each year, such as 5-4-3-2-1: 5% of the balance if you pay off in year one, 4% in year two, and so on. A shorter penalty usually costs a slightly higher rate. If you might sell or refinance within a few years, check the cost in the prepayment table before you choose.
DSCR calculator questions
How do you calculate DSCR on a rental property?
Divide the monthly rent by the monthly PITIA: principal and interest, property taxes, insurance and HOA dues. $3,200 of rent against a $2,787 payment is a DSCR of 1.15.
What is a good DSCR for a DSCR loan?
1.00 or higher qualifies on most programs, and 1.25 or higher usually gets the best leverage and pricing. Some programs go as low as 0.75 with less leverage.
Which rent does the lender use?
For a long-term rental, usually the lower of the signed lease and the market rent from the appraisal. For a short-term rental, either 12 months of booking history or a projection, often counted at 75–80% of gross.
How much rent do I need to qualify?
Multiply the PITIA by the DSCR you need. For a 1.25 DSCR on a $2,787 payment you need about $3,484 a month. The calculator shows this for 0.75, 1.00, 1.10 and 1.25.
Does a DSCR loan look at my income or tax returns?
No. A DSCR loan is qualified on the property’s income. Lenders still check credit, reserves and the property itself, and the loan must be made to a business entity for an investment property you do not live in.
Does interest-only change my DSCR?
Yes. An interest-only payment is lower than an amortizing one, so the same rent gives a higher DSCR. Lenders that offer interest-only often have their own DSCR minimum for it.
Does Easy Lending USA charge a fee to look at my deal?
No. There is no application, processing or upfront fee of any kind. We are paid by the lender only when a loan closes.
More investor calculators
Refinancing out of a hard money loan? The BRRRR calculator checks whether the DSCR refinance pays it off. Still buying and renovating? Start with the hard money loan calculator. All tools are on the calculators page.
Program details: DSCR rental loans, 85% LTV DSCR loans, DSCR cash-out refinance and short-term rental loans.
Results are illustrative estimates based on the numbers you enter. They are not an offer or commitment to lend. Actual loan amounts, rates and terms are set by the lender after underwriting. Easy Lending USA is not a lender or a mortgage broker; we introduce real estate investors to independent private lenders. Business-purpose loans on non-owner-occupied investment property only.