Rental Property DSCR Calculator
Find a rental's debt-service coverage ratio — the number DSCR lenders use to decide whether the rent can carry the loan — and the maximum payment your income supports at any target coverage.
Debt-service coverage
Net operating income covers the mortgage 1.39×.
Payment a target DSCR supports
The most debt this income covers at a coverage ratio you set.
How it stacks up to lender thresholds
DSCR lenders qualify the loan on the property's income, not yours — so this ratio often decides whether a rental gets financed and at what rate. Break-even is a DSCR of 1.0.
The number that gets a rental financed
For a growing investor, DSCR often matters more than your own income. A DSCR loan asks a single question — does the property's net operating income cover the mortgage at our required ratio? — so a strong DSCR can keep you buying long after a debt-to-income limit would have stopped you.
It's also a discipline check. A deal that only works at a DSCR of 1.0 has no cushion; one comfortably above 1.25 can absorb a rough patch. Pair this with the cash flow and full analysis before you commit.
Frequently asked questions
What is DSCR?
DSCR — debt-service coverage ratio — is annual net operating income divided by annual debt service (your mortgage payments). A DSCR of 1.25 means the property's income is 1.25× the loan payment. It tells a lender whether the rent can cover the mortgage on its own.
What DSCR do lenders require?
For DSCR loans, most lenders want at least 1.20–1.25, though some go down to 1.0 (income exactly covers the payment) at higher rates, and a few allow below 1.0 with compensating factors. A higher DSCR generally unlocks better terms. Break-even is a DSCR of exactly 1.0.
What is a DSCR loan?
A DSCR loan qualifies the property on its own income rather than your personal income — no tax returns or W-2s. The lender checks whether the rent covers the mortgage at their required DSCR. It's popular with investors because it scales without your debt-to-income ratio getting in the way.
How can I improve a property's DSCR?
Raise net operating income (higher rent, lower expenses) or lower the debt service (larger down payment, lower rate, or longer amortization). Because DSCR is NOI ÷ debt service, both levers move it. This calculator shows the maximum payment your income supports at any target DSCR.
Does DSCR include taxes and insurance?
Net operating income already subtracts taxes, insurance, and other operating expenses before the ratio is taken, so those are reflected on the income side. The debt-service side is principal and interest. Some lenders use a stricter 'PITIA' coverage that adds taxes, insurance, and HOA to the payment — check how your lender defines it.