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Free DSCR calculator

DSCR Loan Calculator for Rental Property

Use this free DSCR loan calculator to test a rental against lender coverage rules. Enter the rent, PITIA, down payment, rate, and target DSCR to see the lender ratio (qualifying rent ÷ PITIA), the max loan at 1.0 or 1.25, the break-even rent, reserves, and investor cash flow from NOI and annual debt service. No signup or spreadsheet.

  • Lender and investor DSCR
  • Max loan and rent needed
  • Amortizing vs. interest-only

Updated Oct 29, 2026 · Educational estimate, not a loan offer

Rental Property Math

DSCR Loan Calculator

Deal inputs

All fields update in real time.

Presets
Property and rent

Purchase price for a purchase, or appraised value for a refinance.

The lease rent or the rent the appraiser will support.

Use the tax bill or the lender's escrow estimate.

Landlord policy premium for the year.

HOA dues included in the lender's PITIA.

Flood, special assessments, or other monthly escrow.

Loan terms

The equity you bring. The loan is the remaining percentage of value.

The note rate on the DSCR loan.

Amortization term. DSCR loans are often 30-year fixed.

The coverage ratio the lender requires. Many DSCR lenders use 1.20 to 1.25.

Loan type

The lender reduces qualifying rent for short-term rentals or conservative underwriting. Use 25% for many STR programs.

Investor assumptions

Vacancy and credit loss as a percentage of gross scheduled rent.

Property management as a percentage of gross scheduled rent.

Routine repairs and maintenance as a percentage of rent.

A monthly reserve for roof, HVAC, and other capital items.

Owner-paid utilities included in operating expenses.

Parking, laundry, pet, or other income. Excluded from lender DSCR.

Simple mode uses the rent and loan terms above. Advanced mode adds vacancy, management, maintenance, capital reserves, and other income to the investor return.

Closing costs and reserves

Points are charged on the loan amount and paid at closing.

Underwriting, processing, doc, and other flat lender fees.

Title, escrow, appraisal, recording, and other closing costs as a percentage of value.

Months of PITIA the lender requires in reserve.

Cash you can document after closing.

The penalty schedule, usually a declining percentage of the original loan.

The year you expect to sell or refinance. Used for the prepayment penalty.

Deal profile

A higher score can widen DSCR loan options and improve pricing.

The number of rental units. Five or more units may use multifamily underwriting.

Property type can change the rent haircut and lender requirements.

Used only for a refinance. The new loan pays off this balance at closing.

Deal type

Saved deals

Stored in this browser only.

0 / 20

    No saved deals yet. Save a scenario to reload it later or compare two loans.

    Compare deals

    Normalize two loans by DSCR and cash.

    Set the current deal as A, then change the loan terms and set it as B. Saved deals can also be assigned to either side.

    Want this calculator on your site?

    Use the free responsive embed. It keeps the same math and links back to the full tool.

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    How to use it

    Start with the lender test. Then check the investor return.

    A DSCR loan is sized by the property’s income, not by your personal income. The lender counts qualifying rent, adds the full PITIA, and compares the two. The calculator keeps that lender math separate from the investor cash-flow math, which makes it a simple DSCR loan calculator for a first screen and a detailed model for lender prep.

    01

    Enter the property income

    Add the rent the lender will support, taxes, insurance, HOA, and other escrow. These inputs drive both the lender DSCR and the investor return.

    02

    Set the loan and target

    Enter the down payment, rate, term, and target DSCR. The calculator shows the current DSCR, the max loan at your target, and the rent the deal needs.

    03

    Stress the assumptions

    Use the rent and rate matrix, the interest-only comparison, and the reserve gap to see how much room the deal has before it breaks.

    DSCR calculator guide

    What is a DSCR loan calculator?

    A DSCR loan calculator runs the debt service coverage test a lender uses to size a rental property loan. Instead of qualifying you on personal income, the lender compares the rent it will count against the property’s monthly debt service. Enter the property value, down payment, interest rate, term, rent, taxes, insurance, HOA, and other escrow, and the calculator returns the DSCR ratio, monthly PITIA, the max loan at your target coverage, the break-even rent, reserves, and investor cash flow.

    If you are looking for a DSCR calculator rental property investors can use, this tool is different from a general mortgage calculator because the property has to carry the loan on its own. That is why this tool separates the lender test from the investor test: the lender uses qualifying rent and PITIA, while the investor uses NOI and annual debt service. For investors who want the best free DSCR loan calculator, the key is seeing both ratios and the assumptions behind them in one place. This page runs in your browser with no signup, lead form, or spreadsheet.

    How to calculate DSCR

    To calculate DSCR, divide the income the lender accepts by the debt service the lender uses. As a DSCR ratio calculator, this tool returns two versions because lenders and investors count income differently.

    Lender DSCR

    Lender DSCR = qualifying rent ÷ monthly PITIA

    Qualifying rent = market rent × (1 − lender rent haircut)

    PITIA = principal and interest + monthly taxes + monthly insurance + HOA + other escrow

    Investor DSCR

    Investor DSCR = NOI ÷ annual debt service

    NOI = effective gross income − operating expenses

    Annual debt service = 12 months of principal and interest (plus any mortgage insurance)

    A DSCR of 1.25 means qualifying rent covers 125% of PITIA. A ratio below 1.00 means the rent does not cover the payment under the lender’s calculation. The investor ratio uses NOI after vacancy, management, maintenance, and capital reserves, so it is usually lower than the lender ratio on the same deal.

    Worked example

    The default deal is a $250,000 rental with $2,300 monthly rent, 25% down, 7.50% for 30 years, and a 1.25 target DSCR. The loan is $187,500, PITIA is $1,686, and the lender DSCR is 1.36. At the target, the max loan is $209,521 and the rent needed is $2,108.

    Default example

    $250,000 value · $2,300 rent · 25% down · 7.50% for 30 years · 1.25 target DSCR

    Loan amount
    $187,500
    Principal and interest
    $1,311
    Monthly PITIA
    $1,686
    Lender DSCR
    1.36
    Max loan at target
    $209,521
    Max price at current down payment
    $279,361
    Rent needed
    $2,108
    Monthly investor cash flow
    +$85
    Cash to close
    $73,375
    Six months of reserves
    $10,116
    Prepayment penalty in exit year 3
    $5,625

    For a full walkthrough of the formulas and assumptions, read the DSCR formula guide.

    What is a good DSCR? Minimum 1.0 vs. 1.25

    Many DSCR lenders look for a minimum 1.0 to 1.25. A 1.00 ratio covers PITIA exactly, a 1.20 ratio leaves a 20% cushion, and a 1.25 ratio leaves a 25% cushion. The right target depends on the lender, property type, loan size, credit, reserves, and the rent the lender is willing to count.

    Some programs allow ratios between 1.00 and 1.19 with a larger down payment, more reserves, or a higher rate. A ratio below 1.00 usually means the deal cannot carry the loan on its own under the lender’s math. These ranges are general; lender overlays vary by state, property type, and loan amount.

    How lenders typically treat different DSCR ranges
    DSCRWhat it meansTypical lender treatment
    1.25+25% or more cushionPreferred; strongest pricing and terms
    1.20–1.2420–24% cushionCommon approval floor for many DSCR programs
    1.10–1.1910–19% cushionSome programs; may require more down payment or reserves
    1.00–1.09Rent just covers PITIALimited programs; larger down payment and reserves
    Below 1.00Rent does not cover PITIAUsually declined; deal needs more rent or less debt

    Swipe the table to see every column.

    Do not confuse the lender minimum with the investor target. A deal can close at 1.20 and still produce thin cash flow after vacancy, management, maintenance, and reserves. Run both ratios before you make an offer. The what is a good DSCR guide compares thresholds by property type and strategy.

    Key DSCR terms: NOI, annual debt service, max loan, break-even rent

    These are the terms that drive every output in the calculator.

    DSCR ratio
    The ratio of qualifying rent (lender) or NOI (investor) to debt service. A 1.25 means the income is 25% higher than the payment.
    NOI
    Net operating income. Effective gross income minus operating expenses. It excludes debt service, income taxes, and depreciation.
    Annual debt service
    The 12-month cost of principal and interest, plus any mortgage insurance. It is the denominator for investor DSCR.
    Minimum 1.0 / 1.25
    A 1.00 ratio covers PITIA exactly. A 1.25 ratio adds a 25% cushion. Most DSCR lenders approve and price around 1.20 to 1.25.
    Max loan
    The largest loan the rent supports at your target DSCR. Allowed payment = qualifying rent ÷ target DSCR − monthly escrows; max loan = present value of that payment.
    Break-even rent
    The market rent needed to hit the target after the lender haircut. Rent needed = target DSCR × PITIA ÷ (1 − rent haircut).

    How to read the calculator results

    The headline DSCR tells you whether the deal passes the lender test today. The other outputs tell you where the deal has room and where it breaks.

    Lender DSCR
    The pass/fail number. Compare it with your target and the lender’s minimum, usually 1.20 to 1.25.
    Max loan and max price
    The largest loan and purchase price the rent supports at your target. Use them as negotiating ceilings, not appraisals.
    Rent needed
    The market rent required to hit the target after the lender haircut. The gap to your expected rent is the deal’s income cushion.
    Reserves
    Required months multiplied by PITIA, compared with the cash you can document after closing. A gap means more liquidity or a smaller loan.
    Investor DSCR and cash flow
    NOI divided by annual debt service, plus monthly cash flow after vacancy, management, maintenance, and reserves. This is the ownership test.
    Interest-only and prepayment
    The interest-only payment raises DSCR today but adds refinance risk later. The prepayment penalty shows the cost of exiting early.

    Before you make an offer, run the same deal through the cash flow calculator, cap rate calculator, and cash-on-cash return calculator.

    DSCR loan calculator vs. Excel

    A DSCR loan calculator Excel template is flexible, but it is easy to break. Common errors include mixing lender and investor lines, forgetting the rent haircut, using annual rent against a monthly payment, and hardcoding a payment that no longer matches the loan terms. A browser tool keeps those conventions fixed so every scenario is comparable.

    Excel DSCR formula

    =Rent / (PMT(Rate/12, Years*12, -Loan) + Taxes/12 + Insurance/12 + HOA + OtherEscrow)

    Investor DSCR = NOI / AnnualDebtService

    This free DSCR loan calculator also exports CSV, so you can screen in the browser and move the numbers into Excel for custom overlays or portfolio tracking. If you only need a quick answer, the browser is faster than rebuilding the formula.

    Assumptions and limitations

    The calculator excludes income taxes, depreciation, lease-up timing, state-specific prepayment rules, lender overlays, and a failed refinance or sale. It also holds taxes, insurance, HOA, and other escrow constant when solving the max loan. Treat the output as a negotiating range, not a loan commitment, and confirm the lender’s rent, reserve, and rate assumptions before you rely on the numbers. Read the methodology for the exact conventions.

    What moves the result

    Small changes in rent or PITIA move DSCR quickly.

    DSCR is a ratio, so both sides matter. A $50 rent change and a $50 escrow change have the same dollar impact, but they can come from very different assumptions. Test the rent, rate, taxes, insurance, and HOA separately.

    In the default example, the lender DSCR is 1.36 and the investor DSCR is 1.06. The gap exists because the investor calculation subtracts vacancy, management, maintenance, and capital reserves that the lender does not include in PITIA.

    Higher rent

    Raises qualifying rent and the max loan. Confirm the rent is supported by the lease or appraiser, not just the listing.

    Higher rate

    Raises the payment and lowers DSCR. The max loan falls because the same rent supports less debt.

    More down payment

    Shrinks the loan and PITIA, which raises DSCR and lowers cash flow leverage. It also increases cash to close.

    Higher taxes or HOA

    Raises PITIA without changing qualifying rent. A special assessment or insurance increase can move a deal below the lender threshold.

    Interest-only

    Lowers the payment and raises DSCR today. It does not build equity, and the payment risk returns when the loan matures.

    Rent haircut

    Reduces qualifying rent for short-term rentals or conservative underwriting. A 25% haircut can turn a strong deal into a marginal one.

    Common questions

    DSCR loan FAQ

    Answers to common questions about DSCR loans, down payments, borrowing limits, rates, and first-time investing. For the math behind the outputs, read the methodology.

    What is DSCR on a rental property?

    DSCR is the debt service coverage ratio. It divides the income a lender will count toward the loan by the monthly or annual debt service. For a rental property, the lender version is usually qualifying rent divided by PITIA: principal, interest, taxes, insurance, HOA, and other escrow. A DSCR of 1.25 means the qualifying rent is 1.25 times the payment.

    How to calculate a DSCR loan?

    Use the lender formula: DSCR = qualifying monthly rent ÷ monthly PITIA. PITIA includes principal, interest, property taxes, insurance, HOA, and other escrow. If rent is $3,000 and PITIA is $2,400, the DSCR is 1.25. For the investor view, divide NOI by annual debt service. The calculator above returns both ratios plus the max loan at your target.

    Do DSCR loans require 20% down?

    Many DSCR programs start at 20% down, or 80% loan-to-value. Some lenders allow 15% for strong credit and a DSCR of 1.25 or higher, while lower coverage, cash-out refinances, or riskier property types may require 25% or more. Down payment changes PITIA, so test the actual loan amount rather than assuming the minimum.

    How much can you borrow on a DSCR loan?

    The loan is sized by the property’s qualifying rent and the lender’s minimum DSCR, not by your personal income. Many DSCR programs lend up to $2 million to $3 million, with jumbo options above that. Your maximum also depends on the purchase price or appraisal, LTV, credit, reserves, and property type. Use the max loan output above at a 1.20–1.25 target as a realistic ceiling.

    Is it hard to qualify for a DSCR loan?

    A DSCR loan can be easier to qualify for than a conventional investment loan because it usually does not require W-2s, tax returns, or personal income documentation. The trade-off is that the property must cover its payment. Lenders typically look for a 1.20–1.25 DSCR, 20%–25% down, a mid-600s credit score or better, reserves, and a clean appraisal. Rent coverage matters more than a perfect file.

    What is a typical DSCR loan rate?

    DSCR rates are usually higher than conventional investment-property rates because DSCR loans are non-QM and priced for property risk. As of late 2026, many quotes fall in the roughly 6.25% to 8.75% range. The exact rate depends on credit, DSCR, LTV, loan size, property type, term, and prepayment structure. Compare the full loan estimate, not just the note rate.

    Can I calculate my DSCR online?

    Yes. Enter rent, property value or purchase price, down payment, rate, term, taxes, insurance, HOA, and other escrow into the calculator on this page. It returns lender DSCR, investor DSCR, PITIA, maximum loan, break-even rent, reserves, and cash flow instantly. The tool is free, needs no signup or email, and runs in your browser.

    Can I get a DSCR loan as a first-time investor?

    Yes. Many DSCR lenders do not require a history of owning rental property because the loan is underwritten on the property’s income. First-time investors still need the down payment, acceptable credit, documented reserves, and a property that meets the lender’s DSCR minimum. House-hacking and first-time homebuyer programs are separate; a DSCR loan is for an investment property.

    What is a good DSCR for a DSCR loan?

    Many DSCR lenders look for 1.20 to 1.25. Some programs allow 1.00 to 1.19 with a larger down payment, more reserves, or a higher rate. A ratio below 1.00 means the qualifying rent does not cover PITIA under the lender calculation. The right target depends on the lender, property type, and loan program.

    What counts in PITIA?

    PITIA includes principal and interest, property taxes, homeowners or landlord insurance, HOA dues, and other escrow items such as flood insurance or special assessments. It does not include vacancy, management, maintenance, or capital reserves. Those belong in the investor cash-flow analysis, not the lender DSCR.

    Does the calculator use market rent or the current lease?

    Enter the rent you expect the lender to support. That may be the current lease, a market rent estimate, or the appraiser’s opinion of market rent. For a short-term rental, many lenders apply a rent haircut, often 25%, to the projected rent. The calculator lets you set that haircut explicitly.

    How does the maximum loan solve work?

    The calculator finds the loan payment that makes qualifying rent ÷ PITIA equal your target DSCR. It subtracts taxes, insurance, HOA, and other escrow from the allowed payment, then converts the remaining payment into a loan amount using the note rate and term. For an interest-only loan, it divides the payment by the monthly rate.

    Why is investor DSCR different from lender DSCR?

    Lender DSCR uses the rent the lender counts and the full PITIA. Investor DSCR uses net operating income after vacancy, management, maintenance, capital reserves, and other operating expenses. A deal can pass the lender test and still produce weak investor cash flow, or the reverse.

    How are reserves calculated?

    The calculator multiplies the required months by monthly PITIA, then compares that amount with the cash you can document after closing. A reserve gap means you need more liquidity or a smaller loan. Actual lender reserve requirements vary by loan amount, property type, and borrower profile.

    Does an interest-only loan improve DSCR?

    Yes, in the short run. An interest-only payment is lower than an amortizing payment, so PITIA falls and DSCR rises. The trade-off is that the loan does not pay down principal and must be refinanced or paid off later. The calculator shows both the amortizing and interest-only result for the same loan amount.

    What is a prepayment penalty on a DSCR loan?

    A prepayment penalty is a fee for paying the loan off early, usually a declining percentage of the original loan balance during the first few years. A 5-4-3-2-1 structure charges 5% in year one, 4% in year two, and so on. The calculator uses the original loan amount and your exit year.

    What does the DSCR calculator exclude?

    The model excludes income taxes, depreciation, lease-up timing, lender overlays, state-specific prepayment rules, and a failed refinance or sale. It also holds taxes, insurance, HOA, and other escrow constant when solving the maximum loan. Results are estimates based on the inputs you enter.

    Can I save and compare DSCR scenarios?

    Yes. Saved deals and A/B comparisons stay in your browser using local storage. The Share button copies a link with the full deal encoded in the URL. CSV and print are available for your records. No account or email address is required.

    Is this DSCR loan calculator free?

    Yes. The calculator is free, requires no account or email address, and runs entirely in your browser. You can save deals, compare scenarios, share a link, export CSV, and print results without paying or submitting a lead form.

    Can I use this instead of a DSCR loan calculator Excel file?

    Yes for screening and lender prep. The browser calculator keeps the lender ratio, investor ratio, PITIA, reserves, and prepayment math separate, which avoids the most common spreadsheet errors. If you need custom overlays or portfolio tracking, export the CSV and continue in Excel.

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