DSCR Calculator
Enter the monthly rent and purchase details to see the Debt Service Coverage Ratio for your rental property. A DSCR of 1.25 or higher clears most lender thresholds. All figures are estimates. Learn about DSCR loans at AFS →
DSCR Ratio Calculator
DSCR = Monthly Rent ÷ Monthly PITIA. A ratio above 1.25 clears most lender thresholds. Figures are illustrative only.
Enter the property details and click Calculate to see the DSCR ratio and monthly breakdown.
All calculations are estimates for educational purposes only and do not constitute a loan commitment or guarantee of any rate or terms. DSCR thresholds vary by lender and program. Actual qualifying is determined during underwriting. NMLS #1277693. Get a real rate quote →
How to Use the DSCR Calculator
The Debt Service Coverage Ratio is the core qualifying metric for investment property loans that don't rely on personal income documentation. Enter the monthly rent you expect the property to generate (based on a signed lease, a market-rent comparable, or a short-term rental projection) and then fill in the purchase price, down payment, rate, taxes, insurance, and HOA. The calculator divides gross monthly rent by total monthly PITIA to produce the ratio.
A DSCR of 1.25 means the property earns 25% more per month than the debt costs to carry. Most DSCR lenders treat 1.25 as the preferred floor, though some investors will accept lower ratios with compensating factors like a larger down payment or stronger credit. A ratio below 1.0 means the rent does not cover the monthly payment, which generally falls outside DSCR program guidelines. The calculator flags each scenario so you can quickly see which range your deal lands in before discussing it with a lender.
DSCR rates are generally higher than conventional investment property rates because of the reduced documentation structure. Adjusting the rate field to reflect a current lender indication will give you a more realistic picture of where the ratio lands at actual market pricing. All figures produced by this calculator are illustrative only and do not represent a quote or commitment to lend.
DSCR Calculator FAQ
What is a good DSCR ratio for a rental property?
Most DSCR lenders look for a ratio of 1.25 or higher, meaning the property earns 25% more than the debt service. Some investors will accept ratios as low as 1.0 (break-even) or below with stronger compensating factors such as a larger down payment or higher credit score. The minimum acceptable ratio and any pricing adjustments at lower ratios are set by each funding lender.
How is the DSCR ratio calculated?
DSCR is calculated by dividing the property's monthly gross rental income by the monthly PITIA payment: principal, interest, property taxes, homeowners insurance, and HOA. If a property rents for $3,200 per month and the PITIA is $2,500, the DSCR is 1.28. The specific income sources accepted vary by funding lender and program.
Can I use Airbnb or VRBO income to qualify?
Some DSCR lenders allow short-term rental income to be used in the qualifying calculation. Accepted income sources, documentation requirements, and any haircut applied to gross income vary by funding lender. Contact Advanced Funding Solutions to discuss whether your short-term rental scenario may fit a DSCR product.
Does a DSCR loan require personal income documentation?
DSCR loans are generally designed to qualify investment properties based on the property's rental income rather than the borrower's personal tax returns or W-2s. Specific documentation requirements are set by each funding lender. All loans are subject to credit, asset, property, and underwriting approval.
What is the difference between DSCR and a conventional investment property loan?
A conventional investment property loan qualifies the borrower using personal income, tax returns, and debt-to-income ratio. A DSCR loan qualifies based on the rental property's cash flow relative to the proposed debt service. For investors whose tax returns show depreciation or paper losses that don't reflect actual cash flow, DSCR is often a cleaner path.