DSCR Calculator
Find your debt service coverage ratio (DSCR) in seconds, then see how it compares to the minimums investor lenders typically require.
Calculate your DSCR
From an appraiser's rent schedule, or a reliable rent estimate for the area.
The actual amount on a current signed lease. Leave blank if vacant or not yet rented.
Enter 0 if none apply.
How DSCR is calculated
DSCR stands for debt service coverage ratio. It measures whether a rental property's income covers the cost of owning it — the core question every DSCR loan is built around. The formula is:
That looks simple, but two details determine whether your number matches what a lender will actually calculate: which rent figure counts, and what counts as a debt obligation.
Step 1: Use the lower of market rent or in-place rent
Lenders don't just take the rent you're currently charging. They compare it against an appraiser's market rent estimate for the property, and use whichever figure is lower. This protects against a lease that's priced above what the local market actually supports. If the property is vacant, market rent is used on its own.
Step 2: Add up every monthly obligation — not just the mortgage payment
"Total monthly debt obligations" is a wider number than most people expect. It's usually referred to by the acronym PITIA:
P — Principal
I — Interest
T — Property Taxes
I — Insurance
A — Association dues (HOA/COA), if applicable
Leaving out taxes, insurance, or HOA dues is the most common reason someone's own back-of-envelope DSCR comes out higher than what a lender quotes them.
Step 3: Divide, and read the result
Once you have both numbers, the calculation itself is simple division. A DSCR of 1.0 means the rent exactly covers the monthly obligations. Above 1.0, the property produces positive cash flow after debt service. Below 1.0, the rent falls short and the difference has to come from somewhere else.
What counts as a "good" DSCR?
Most conventional lenders look for 1.0–1.25 or higher. But minimums vary by lender, and some DSCR loan programs are specifically built to work with ratios below 1.0 — New Silver, for example, will lend down to a DSCR of 0.75, meaning the property doesn't have to fully cover its own payment to qualify. That's a meaningfully more flexible bar than most investors assume going in, and it's worth knowing before you rule a property out based on a rough mental calculation.