What is DSCR and how is it calculated?

DSCR stands for Debt Service Coverage Ratio. It equals monthly gross rental income divided by monthly PITIA (Principal, Interest, Taxes, Insurance, and Association fees). A property renting for $2,500/month with $1,971/month PITIA has a DSCR of 1.27x. We use the lesser of purchase price or appraised value to determine loan amount.

What is a good DSCR for a rental property loan?

A DSCR of .75x or above qualifies for most of our loan programs, meaning the property's income covers the full mortgage payment. A 1.0x DSCR means the property breaks even. Properties below .75x can still qualify through our No-Ratio DSCR program, which removes the DSCR requirement entirely.

What happens if my DSCR is below 1.0?

A DSCR below .75x means the property's rental income does not fully cover the mortgage payment. While standard DSCR loan programs require at least .75x, our No-Ratio DSCR program has no minimum DSCR requirement. You can qualify based on LTV, credit score, and down payment instead.

What expenses are included in DSCR calculations?

DSCR calculations include all components of PITIA: principal, interest, property taxes, insurance, and association/HOA fees. The monthly payment is calculated from the loan amount and interest rate using either 30-year amortization or interest-only terms. Gross monthly rent is divided by total PITIA to determine the ratio.

DSCR Loan Calculator – Debt Service Coverage Ratio for Rental Properties

Investor analyzing DSCR with financial charts, house model, and laptop

The Debt Service Coverage Ratio (DSCR) is the single most important number in rental property lending. It tells lenders whether your property's income can cover the mortgage payment — and it's how we qualify borrowers instead of using tax returns, W-2s, or personal income verification.

Use our free calculator below to find your DSCR instantly. A ratio of 1.0x means the property breaks even. Most of our programs require a minimum .75x DSCR, meaning the rent fully covers the mortgage payment.

Apply Online 888-375-7977

DSCR Loan Calculator

Calculate your Debt Service Coverage Ratio instantly

Property Income

Gross Monthly Rent ($)

Property Value & Loan

Purchase Price ($)

Appraised Value ($)

We use the lesser of purchase price or appraised value.

Down Payment (%)

Interest Rate (%)

Amortization

30-Year Fixed Interest Only

Monthly Expenses (TIA)

Property Taxes ($/month)

Insurance ($/month)

HOA / Association Fees ($/month)

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Your DSCR

1.41x

Qualifies

0.0x0.8x1.0x1.2x1.5x2.0x+

Below 1.0xBreak-EvenMin. QualifyingStrong

Property Value Used $300,000

Loan Amount $240,000

Monthly P&I Payment $1,596/mo

Taxes + Insurance + HOA $375/mo

Total PITIA $1,971/mo

Gross Monthly Rent $2,500/mo

Monthly Cash Flow $529/mo

Program Qualifications

Standard DSCR Loans 1.2x

Break-Even Programs 1.0x

No-Ratio DSCR Program Any

Request a Quote with These Numbers

DSCR = Gross Monthly Rent ÷ Total Monthly PITIA

PITIA = Principal + Interest + Taxes + Insurance + Association Fees

.75x or above qualifies for most programs. Below 1.0x? Our No-Ratio DSCR program has you covered.

Know Your DSCR? Let's Talk Financing.

Whether your DSCR is 1.5x or 0.8x, we have a loan program that works. Call us to discuss your specific property and get a rate quote in minutes.

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DSCR Loan Programs

Every loan program we offer uses DSCR-based qualification — no tax returns, no W-2s. Pick the program that fits your strategy and use the calculator above to see where your property stands.

No-Ratio DSCR Loans

No minimum DSCR required. Qualify on LTV and credit score alone — even if the property doesn't break even.

5 & 10 Year Fixed Rate

Blanket loans for 2+ properties. 1.0x DSCR minimum. $500K–$50M with 30yr amortization.

30/30 Single Property Loan

30yr fixed, 30yr amort, no balloon. Finance one property at a time from $50K–$5M+.

30 Year Program

Flexible 5, 10, or 30yr fixed terms for single or blanket portfolios. 650 min FICO.

Short-Term Rental / Airbnb Loans

DSCR loans for Airbnb and vacation rentals using projected STR income.

Stated Commercial Investor

Stated income investor loans for commercial rental properties. Cash flow-based underwriting.

Blanket & Multifamily Loans

Consolidate multiple properties or finance apartment buildings under one DSCR-qualified mortgage.

Refinance Rental Portfolio

Cash-out refinance your existing rental portfolio. DSCR-based with unlimited cash out.

Learn More About DSCR Lending

Explore our articles and guides that cover DSCR qualification, loan comparisons, and investment strategies for rental property investors.

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Ready to Get Your DSCR Loan?

You've calculated your DSCR — now let's put it to work. Apply online or call us for a rate quote based on your property's specific numbers. No application fees, no obligation.