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DSCR calculator: will the rent carry the loan?

Put in the price, the rent and the carrying costs. You get the ratio, the largest loan the rent supports, and the rent you would need, using the lender's own rules.

The property
Program max 80% on a purchase
Rent and expenses
Lender uses the lower of the lease and market rent, or 90% of market rent on a vacant unit.
The loan
7.25 is a placeholder for the math, not a quote. Use the rate you were quoted.

Clears 1.05x minimum

Debt service coverage

1.22x

Rent of $2,650 covers the $2,171 monthly payment 1.22x. The program minimum is 1.05x.

Loan amount
$243,750
Principal and interest
$1,663
Taxes, insurance, HOA
$508
PITIA per month
$2,171
Largest loan at 1.05x
$295,448
Rent needed at 1.05x
$2,280
Rent minus PITIA
$479
Check this deal DSCR loan terms

Lender's DSCR: monthly rent divided by principal, interest, taxes, insurance and association dues (PITIA). Before vacancy, repairs and management.

How this calculator differs

Most DSCR calculators stop at the ratio. A lender does not: it sizes the loan twice, once by loan-to-value and once by the ratio, and lends the lower amount. So this one solves backward too. The "largest loan" line is the loan that puts your ratio at exactly 1.05x at your rate. If that number is below the loan you asked for, the rent is your limit, not the appraisal.

The rules built in

  • Minimum ratio: 1.05x, rent divided by PITIA.
  • Rent: enter the lower of your lease and market rent. For a vacant unit, enter 90% of market rent.
  • Leverage: up to 80% LTV on a purchase or rate-and-term refinance, 75% on a cash-out.
  • Payment: 30-year amortizing by default; tick interest-only to see the ratio on an interest-only payment.

The rate in the box is a placeholder to make the math work. Replace it with the rate on your quote, or send us the deal and we will get you one. Full program terms are on the DSCR loans page, today's Treasury and SOFR numbers are on the rates page, and typical rents and prices for 574 metros are in rental math by metro.

Questions people ask

How do you calculate DSCR on a rental property?

Divide the monthly rent the lender will count by the monthly PITIA: principal, interest, property taxes, insurance and HOA dues. $2,650 of rent against a $2,171 PITIA is 1.22x.

What is a good DSCR for a rental loan?

The program here needs 1.05x. Many lenders price better at 1.20x or 1.25x and above, so a higher ratio can buy a lower rate, but anything at or over 1.05x qualifies.

Does DSCR include vacancy and repairs?

No. For a 1-4 unit DSCR loan the lender uses gross rent against PITIA. Vacancy, repairs, management and capital reserves are your problem, not the ratio's, which is why rent minus PITIA is not the same as profit.

How do I get the most loan from my rent?

Lower the payment: a longer amortization, partial interest-only, a lower rate, or buying down taxes and insurance with a better policy. The calculator shows the largest loan your rent supports at 1.05x so you can see how much room you have.

Numbers look right?

Send the deal. We check it against the lender's terms and come back with a loan.

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