DSCR Calculator (Rental Property)
See if the rent covers the payment — the number DSCR lenders price on.
Workable — the property covers itself; some programs fit.
Estimate only — programs typically want DSCR ≥ 1.0–1.25 and qualify on the property's income, not your tax returns. Actual terms vary by deal and lender.
How this calculator works
DSCR stands for debt-service coverage ratio. For a rental property, it compares the rent the property brings in with the full monthly housing payment. This calculator divides monthly rent by PITIA: principal, interest, taxes, insurance and association dues.
It works out principal and interest on a 30-year amortizing schedule at the rate you enter, then adds one-twelfth of your annual property taxes, one-twelfth of your annual insurance and your monthly HOA. That total is PITIA. Rent divided by PITIA is the DSCR.
A DSCR of 1.00 means the rent exactly covers the payment. Above 1.00, the property brings in more than it costs to carry. Below 1.00, you'd be covering the gap from somewhere else every month.
How to read your result
| DSCR (rent ÷ PITIA) | The headline number, with a plain-language verdict underneath it. Many programs look for 1.0 to 1.25 or better, and stronger coverage generally helps your terms. |
|---|---|
| Est. monthly payment (PITIA) | The full carrying cost a lender will measure the rent against. If taxes or insurance are guesses, get real numbers first; both move DSCR more than most investors expect. |
| Principal & interest (30-yr) | The loan payment on its own. Useful for seeing how much of PITIA is the loan and how much is the property's fixed costs. |
What DSCR lenders look at
The ratio is the headline, but it isn't the whole file. These are the other things DSCR programs commonly weigh. Requirements vary by lender and program.
The rent they'll count
The rental income a lender will credit toward the ratio. How it's documented and counted varies by lender and program.
Property type and condition
Single-family, 2–4 units and small multifamily fit different programs. A property that needs work may belong in a bridge or rehab loan first.
Down payment and equity
How much of your own money is in the deal shapes leverage and terms.
Credit
DSCR loans qualify on the property's income, but your credit still affects the terms you're offered.
Reserves
Lenders commonly want cash set aside to cover payments if the unit sits empty for a stretch.
Experience
Some programs consider how many properties you've owned or managed. First-time investors usually still have options.
A worked example
Take an example rental that leases for $2,400 a month, where principal and interest on the loan come to $1,500 a month.
Annual taxes of $2,400 add $200 a month, and annual insurance of $1,600 adds about $133. There's no HOA. PITIA is about $1,833.
DSCR is $2,400 ÷ $1,833, or about 1.31. The rent covers the full payment with room to spare.
Now suppose the insurance quote comes back at $3,600 a year. That's $300 a month, PITIA rises to about $2,000, and DSCR falls to 1.20. One line item moved the ratio by more than a tenth.
Common questions
What DSCR do lenders want?
Most DSCR programs look for 1.0–1.25 or better — meaning the rent covers 100–125% of the full monthly payment (principal, interest, taxes, insurance, and HOA). Stronger coverage generally means better pricing.
Do I need tax returns for a DSCR loan?
No — that's the point of the product. DSCR loans qualify on the property's rent coverage, not your personal income, so no tax returns or W-2s are required on most programs.
What if my DSCR is below 1.0?
A lower loan amount, a rate buy-down, or a different program can often fix it. Some lenders also offer sub-1.0 DSCR options at adjusted terms — talk to us before ruling a deal out.
How is DSCR calculated?
Monthly rent divided by the full monthly payment: principal, interest, taxes, insurance and any HOA dues, often called PITIA. For example, a property renting for $2,400 with a $2,000 PITIA has a DSCR of 1.20.
How can I raise my DSCR?
Lower the payment or raise the rent. A larger down payment, a smaller loan, shopping your insurance or a rate buy-down all bring PITIA down.
Your next step
If the rent covers the payment, the property may qualify on its own income. See how we work with real estate investors, or go straight to the products.
DSCR loan
Rental financing that qualifies on the property's rent, not your tax returns.
Learn more →Rental portfolio
One loan across several rentals, for investors who are scaling.
Learn more →Cash-out refinance
Pull equity from a rental you already own to fund the next one.
Learn more →Checking your options takes about 2 minutes, doesn't affect your credit, and carries no obligation. Capco Capital is a commercial lending advisory firm operated by Capco Capital LLC. We arrange financing through third-party lenders as a loan broker and are compensated by the lender when a loan funds. We are not a lender and are not affiliated with the U.S. Small Business Administration.
Like the numbers? Let's make them real.
Check your options in two minutes with no credit pull and no obligation, or call (337) 270-2036.
