DSCR Calculator
Understand DSCR Loans Before You Invest
Instead of qualifying based on tax returns, DSCR lenders ask one question: can the property pay for itself?
What Is a DSCR Loan?
A DSCR loan is designed for income-producing real estate. Approval is based on rental income compared to total monthly debt.
Why Investors Use Them
- No personal income verification
- No DTI limits on multiple properties
- Asset-focused underwriting
Who They’re Best For
- Self-employed investors
- Portfolio landlords
- LLCs & real estate entities
How to Use the DSCR Calculator
1
Loan & Property Basics
- Purchase price & down payment (20–25%)
- Interest rate (typically higher)
- Loan term (30 years standard)
2
Holding Costs
- Annual taxes & insurance
- Converted to monthly expenses
3
Income Projections
- Expected monthly rent
- Other consistent income streams
How to Read Your Results
| DSCR | Status | What It Means |
|---|---|---|
| 1.25+ | Excellent | Strong cash flow. Best loan terms. |
| 1.00 – 1.24 | Good | Property covers debt. Most lenders approve. |
| 0.75 – 0.99 | Fair | Negative cash flow. Higher down payment may be needed. |
| Below 0.75 | Poor | High risk. Approval is difficult. |
Key Terms
PITI: Principal, Interest, Taxes & Insurance (total monthly payment)
Monthly Cash Flow: Income remaining after PITI
PITI: Principal, Interest, Taxes & Insurance (total monthly payment)
Monthly Cash Flow: Income remaining after PITI
Ready to see if your deal works? Enter your property details below and check whether it meets the 1.25 DSCR “Gold Standard.”
DSCR Loan Calculator
Calculate PITI & Debt Service Coverage Ratio
Property & Loan Details
Results
Enter values and click calculate