DSCR Calculator — does this property cash-flow?
DSCR (Debt Service Coverage Ratio) is the math that drives DSCR loan qualifying. Enter your numbers below to see whether the property covers itself — and which DSCR program tier you'd likely fall into.
Calculate your DSCR
All fields are monthly amounts in US dollars. Numbers update live as you type.
DSCR will appear here once you start entering values.
This calculator is an educational tool. Actual DSCR qualifying numbers depend on the appraiser's rent analysis, lender-required reserve calculations, and program-specific overlays. Subject to investor approval.
How DSCR works
Debt Service Coverage Ratio = monthly rental income ÷ total monthly property payment, including principal, interest, taxes, insurance, and association dues if applicable.
- DSCR above 1.0 means the property cash-flows positively after the mortgage payment.
- DSCR at 1.0 means rent exactly equals the property's payment — a break-even structure.
- DSCR below 1.0 means negative monthly cash flow; some programs still finance with adjustments.
The lender isn't analyzing your personal debt-to-income. The question on a DSCR loan is simply: does this property cover its own monthly cost?
DSCR pricing tiers — what to expect
| DSCR Ratio | Tier characterization | What it typically means |
|---|---|---|
| 1.25+ | Strongest tier | Best pricing typically available; full leverage on most programs |
| 1.10–1.24 | Strong | Standard pricing; full leverage often available |
| 1.00–1.09 | Qualifying | Property breaks even or modestly positive; standard programs qualify |
| 0.85–0.99 | Sub-1.0 | Some programs allow with rate/leverage adjustments |
| 0.75–0.84 | Low-DSCR | Specialized programs only; larger down payment, higher rate |
| Below 0.75 | No-ratio territory | "No-ratio" programs that don't require coverage; highest pricing |
Specific eligibility depends on credit score, loan amount, property type, and investor overlays. Subject to investor approval.
Want to model real DSCR loan pricing?
The calculator above gives you a quick read on your property's coverage ratio. To translate that into a real loan structure — rate, leverage, reserves, closing timeline — bring the specific property and we'll model it with current pricing.
See also: the full DSCR loan program guide and conventional vs DSCR comparison.
Common questions
What number does the appraiser use for rent on a vacant property?
On DSCR purchase loans for vacant properties, the appraiser provides a market-rent analysis used as the qualifying rent. For tenant-occupied properties, the existing lease plus rent-receipt history is typically used.
Is the calculator accurate?
It's a useful first-look estimate. Actual DSCR qualifying numbers depend on the lender's specific calculation method, appraiser's rent analysis, and program-specific adjustments. Use it as a starting framework.
Why are taxes and insurance included?
Because the lender's calculation uses the total monthly property obligation — principal, interest, taxes, insurance, and association dues — as the denominator. Leaving any of those out overstates the actual DSCR.
What about vacancy and maintenance?
Lender DSCR calculations typically don't deduct for vacancy or maintenance — they use gross rent versus total housing payment. Your own investment cash-flow analysis should include vacancy and maintenance assumptions separately.
Does this work for short-term rentals?
Short-term rental financing uses a different income basis depending on the program. Either projected long-term market rent (most conservative) or actual 12-month short-term rental history. The calculator above uses a single monthly rent input — for short-term rental analysis, use the 12-month net average as your input.
Want real loan pricing for this property?
Bring the property's rent estimate, target purchase price, and current portfolio structure. We'll map the financing path that best supports the next stage of growth.