DSCR Loan Calculator
Debt service coverage ratio (DSCR) loans qualify a rental property on its rent instead of your personal income. Enter the purchase and rent details to see the ratio most DSCR lenders use, a stricter NOI-based version, your estimated cash flow, and the largest loan that would hit your target ratio.
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Results
DSCR (rent ÷ PITIA)
1.25
Rent covers the full payment (PITIA) 1.25×, which meets your 1.25 target. After vacancy and expenses, estimated cash flow is $96.77 per month.
| Meets target? | Yes |
|---|---|
| Loan amount | $225,000.00 |
| Principal & interest | $1,573.23 |
| PITIA (P&I + taxes, insurance, HOA) | $2,073.23 |
| NOI-based DSCR (NOI ÷ P&I) | 1.06 |
| Est. monthly cash flow | $96.77 |
| Max loan at target DSCR | $225,967.85 |
Estimate only. Not legal or financial advice.
How this calculator works
Most DSCR lenders divide gross monthly rent by PITIA: principal, interest, taxes, insurance and association dues. A DSCR of 1.00 means rent exactly covers the payment; 1.25 means rent is 25% higher than the payment.
The NOI-based DSCR is stricter: it subtracts vacancy and operating expenses from rent first, then divides by principal and interest. Commercial lenders and careful investors often look at this version.
Max loan at target works backward: the payment the rent can support at your target ratio, minus taxes, insurance and HOA, converted into a loan amount at your rate and term.
Formulas
P&I = L × r ÷ (1 − (1 + r)^−n), where r = annual rate ÷ 12 and n = monthsDSCR = monthly rent ÷ (P&I + taxes/12 + insurance/12 + HOA)NOI DSCR = (rent × (1 − vacancy) − taxes/12 − insurance/12 − HOA − other) ÷ P&ICash flow = NOI − P&I Assumptions & limits
- Lender DSCR definitions vary. Some use the lower of lease or market rent, some include management, and short-term rentals are often treated differently. Confirm with your lender.
- Fixed-rate, fully amortizing loan. Interest-only DSCR loans will show a higher ratio.
- Default interest rates are illustrative examples, not quotes or current market rates (last reviewed 2026-10-18). Enter the rate from your lender.
Assumptions last reviewed 2026-10-18.
Disclaimer: This calculator provides estimates for educational purposes only and is not legal, tax, lending or financial advice. Results depend on your inputs and simplifying assumptions. Confirm with a qualified lender, attorney, CPA or title/escrow professional before making decisions.
Frequently asked questions
What is a good DSCR for a rental property loan?
Many DSCR lenders will lend at 1.00 or even slightly below with tighter terms, but 1.20–1.25 or higher usually gets better rates and leverage. For your own safety margin, many investors want at least 1.20 after realistic expenses.
Does DSCR include vacancy and repairs?
The ratio most DSCR lenders use does not; it is gross rent divided by PITIA. That is why this calculator also shows an NOI-based DSCR and estimated cash flow, which do include vacancy and other expenses.
How do I raise my DSCR?
Put more down, buy down the rate, choose a longer amortization or interest-only period, appeal property taxes, shop insurance, or increase rent with improvements.
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