DSCR loan calculator
Use the DSCR loan calculator to estimate your DSCR and LTV using rental income, property expenses, estimated value, and requested loan amount.
Debt service coverage ratio, or DSCR, compares qualifying rental income with qualifying monthly property expense. Investors often use it as one way to understand whether a property's income may cover its recurring debt-related obligations.
Monthly qualifying rental income ÷ monthly qualifying property expense = estimated DSCR.
Start with the rental income a lender may recognize, then compare it with principal and interest plus applicable property expenses. The result is an estimate, not a lending decision.
If qualifying rental income is $3,000 per month and qualifying property expense is $2,400 per month, the estimated DSCR is 1.25. Actual lender calculations may differ.
Lenders may use different methods to evaluate rental income, including lease information, market-rent analysis, or other program-specific documentation. The method depends on the lender and loan program.
Property expense can include principal and interest, taxes, insurance, HOA dues, and other applicable property obligations. Expense treatment varies by lender and program.
An estimated DSCR above 1.0 indicates that estimated qualifying rental income exceeds estimated qualifying property expense. It does not establish eligibility or approval.
An estimated DSCR below 1.0 indicates that estimated qualifying rental income is below estimated qualifying property expense. Program treatment and available options vary.
Lenders may apply different income sources, expense assumptions, documentation standards, and program rules. A lender verifies the calculation for a specific financing request.
DSCR financing is designed for real estate investors and focuses primarily on property rental income and cash flow rather than traditional personal-income documentation.
Loan-to-value, or LTV, compares the requested loan amount with estimated property value. DSCR and LTV are separate estimates that lenders both evaluate when reviewing a financing scenario.
No. The calculator provides an estimated DSCR and LTV. A lender determines qualifying calculations, eligibility, and final loan terms.
Include recurring property expenses that apply to your scenario, such as principal and interest, taxes, insurance, HOA dues, and other required property obligations.
Lenders may use different qualifying income, expense treatment, documentation, and program rules.
LTV compares the requested loan amount with estimated property value. Requirements and terms vary by lender and loan program.
Review the property, income, expense, and documentation questions lenders may consider.
ExploreExplore financing options for qualifying rental-property purchases.
ExploreExplore refinancing questions for existing investment properties.
ExploreExplore equity-access questions for qualifying investment properties.
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