Rental Income

Monthly Gross Rent

Property Details

Property Type

Purchase Price ($)

Down Payment — 25%

25%

Loan Details

Interest Rate — 7.5%

7.5%

Loan Term

Property Expenses

Annual Property Taxes

Annual Insurance

Monthly HOA (if any)

Your DSCR Ratio

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Debt Service Coverage Ratio

Enter your property details to calculate

Fill in the inputs on the left and your DSCR ratio will appear here with a plain-English explanation of what it means for your loan.

Estimated Loan Amount —

Monthly Breakdown

Gross Rent $0

Debt Service (PITIA)

Principal & Interest $0

Property Taxes $0

Insurance $0

HOA $0

Total PITIA $0

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How DSCR is Calculated

The Debt Service Coverage Ratio measures whether a property's rental income covers its total debt obligations. Lenders use this to qualify investors without personal income documentation — your W-2 is irrelevant.

DSCR = Monthly Rent ÷ PITIA

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

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1.25x or higher — Strong. Most DSCR lenders approve here. Best rates and terms. A $2,500/month rent property with a $2,000 PITIA = 1.25x exactly.
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1.0x to 1.24x — Marginal. Some lenders approve with compensating factors: higher credit score (720+), larger down payment (30%+), or 6+ months of reserves.
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Below 1.0x — The property expenses exceed rental income. Select lenders offer "no-ratio" or sub-1.0 programs with rate adjustments. Ask us — these deals still close.

Pro tip: If your DSCR comes in just below 1.25x, a larger down payment reduces your loan amount and PITIA, often pushing you over the threshold. Try increasing the down payment slider above — you'll see the ratio update instantly.