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DSCR calculator
Check your debt service coverage ratio, cash flow and estimated maximum loan in seconds.
Enter the monthly rent, price, loan details, taxes and insurance. The calculator divides rent by PITIA to show your DSCR, then estimates the largest loan the rent supports at your target ratio and your maximum LTV. All math runs in your browser, and nothing is saved or sent.
Results
Estimates only and not a loan offer or quote. The prefilled interest rate and other numbers are example inputs to show how the math works. They are not current market rates. Actual maximum loan, LTV and DSCR requirements depend on the lender, credit score, property type and program. This is not a commitment to lend.
How the calculator works
- Loan amount. If you leave the loan box blank, the loan equals price times (1 minus down payment).
- Payment. Principal and interest use the standard amortization formula for your rate and term. With interest-only checked, it is loan times rate divided by 12.
- PITIA. Principal and interest, plus taxes and insurance divided by 12, plus monthly HOA dues.
- DSCR. Monthly rent divided by PITIA.
- Estimated max loan. The calculator finds the highest PITIA that still meets your target DSCR (rent divided by the target), subtracts taxes, insurance and HOA, and converts the remaining payment to a loan amount. It then caps that at price times your maximum LTV, and shows whichever is lower.
Reading your result
A DSCR of 1.0 or higher is the common benchmark and the usual requirement for first-time investors. Select programs accept a ratio as low as 0.75 with a lower LTV, more reserves or different pricing, and on select programs the interest-only box gives the ratio the interest-only payment qualifies on. Use the example below, then try your own property. If the number is low, see how to improve a low DSCR.
New to investing? See first-time investor DSCR loans and the program ranges. Ready for real terms? Request a quote and we will run your scenario against specialist lenders.
Frequently asked questions
How is DSCR calculated?
DSCR equals monthly rent divided by monthly PITIA. If a property rents for $2,400 a month and the full payment is $2,000, the DSCR is 1.20. A ratio of 1.0 means the rent covers the payment exactly. The rent figure comes from the lease or from the appraiser's market rent schedule, depending on the program. Use our DSCR calculator to test your own numbers.
What DSCR ratio do I need?
A DSCR of 1.0 or higher, meaning the rent covers the full payment, is the common benchmark and gets the widest choice of programs. Across our lender network, select programs accept ratios as low as 0.75, and a few offer no-ratio options where the rent does not have to cover the payment at all. Those lower-ratio programs usually ask for a larger down payment, more reserves or higher pricing. What is allowed depends on the program, so treat any number as general guidance and not a promise. See DSCR loans below 1.0 and no-ratio loans.
Are property taxes and insurance included in the DSCR calculation?
Yes. The payment in the DSCR formula is PITIA: principal, interest, taxes, insurance and any association dues. In flood zones, required flood insurance is part of the insurance cost. In South Carolina, investment property is generally assessed at a higher ratio than owner-occupied property, so check the tax estimate after a purchase.
What can I do if my DSCR is below 1.0?
First, know that select programs accept a DSCR below 1.0, down to 0.75 and sometimes no-ratio, usually with a larger down payment, more reserves or higher pricing. Other levers are an interest-only payment on programs that qualify on it, a rate buydown, a lower insurance quote, a property with stronger rent, or more reserves. A rent increase supported by the appraisal also helps. See how to improve a low DSCR.
What are current DSCR loan rates?
Rates depend on the scenario, so we do not publish a single number. DSCR pricing is driven by credit score, LTV, DSCR, loan amount, property type, occupancy, prepayment penalty choice and the lender. Because the loans are investor loans, pricing is generally higher than a conventional owner-occupied loan. Ask for a scenario quote and compare the full cost, not only the rate. Read our rates and costs guide.
Free, no obligation
Get your DSCR loan quote
Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
- Talk to a person: call 704-343-8681
Prefer to apply directly? Start an application with 1st Advantage Mortgage.