(Free tool) DSCR calculator · no sign-up
Does the rent
cover the loan?
Debt service coverage for an investment property in one screen: rent against principal, interest, taxes, insurance and HOA. Change any figure and the ratio, the max loan and the rent you need update as you type.
(01) Formula
DSCR = rent ÷ PITIA.
The ratio divides the property's monthly gross rent by its full monthly housing payment: principal and interest, property taxes, insurance and association dues (PITIA). Above 1.00 the rent more than covers the payment. Below 1.00 the borrower covers the gap.
$3,200 rent ÷ $2,930 PITIA = 1.09 DSCR
(02) Interest-only
Interest-only changes the denominator.
On an interest-only payment the principal portion drops out, so the ratio uses interest, taxes, insurance and dues (ITIA). The same property shows a higher DSCR on interest-only. Lenders differ on whether an interest-only loan qualifies on the interest-only or the amortizing payment, so check which one yours uses.
(03) Max loan
Solve backwards from the target.
The max loan works the ratio in reverse: rent ÷ target DSCR gives the most PITIA the rent supports. Take out taxes, insurance and dues, and the rest is the principal-and-interest payment the loan can carry at this rate and term.
The rent needed does the opposite: PITIA × target DSCR.
(04) Self-employed
Primary home? Use bank statements instead.
DSCR loans qualify on the property's cash flow and are for investment properties. When a self-employed borrower is buying a home to live in, lenders qualify income from 12 or 24 months of bank statements instead.
DepositDesk reads those statements in your browser and builds the lender-ready income worksheet, with transfers, refunds, NSFs and large deposits flagged. How bank statement income is calculated →
(05) FAQ
Questions brokers ask.
What is DSCR on a rental property loan?+
DSCR (debt service coverage ratio) compares the property's monthly rent to its monthly housing payment: principal and interest, property taxes, insurance and any HOA dues (PITIA). A DSCR of 1.00 means the rent exactly covers the payment; 1.25 means the rent is 25% more than the payment.
How is DSCR calculated?+
DSCR = monthly gross rent ÷ monthly PITIA. For an interest-only loan, the payment uses interest only (ITIA). This calculator shows each part so you can match it to a lender's worksheet.
What DSCR do lenders require?+
Each lender and program sets its own minimum, and some programs allow a DSCR below 1.00 with tighter terms. Check the lender's current matrix before quoting; this calculator lets you set the target you need to test.
Which rent do lenders use?+
Depending on the lender and the property, the rent can come from the lease or from the appraiser's market rent estimate, and some lenders use the lower of the two. Enter the figure your lender will use.
Is this calculator free?+
Yes. The DSCR calculator is free, needs no sign-up and stores nothing. Figures stay in your browser.
My borrower is self-employed and buying a home to live in. Does DSCR apply?+
No. DSCR loans are for investment properties. For a self-employed borrower buying a primary home, a bank statement loan qualifies income from 12 or 24 months of deposits. DepositDesk turns those statements into a lender-ready worksheet.
(Next step)
Self-employed borrower? Run their statements.
Drop in 12 or 24 months of bank statements and get qualifying income with every exclusion and flag explained. Your first file is free; statements never leave your browser.