Save My DSCR Loan

Last Updated: January 2026

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Free DSCR Loan Calculator

Calculate your Debt Service Coverage Ratio instantly. Find out if your investment property qualifies for a DSCR loan — no login required.

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Free DSCR Calculator

Calculate Your DSCR

DSCR = Monthly Rent / Monthly PITIA. Find out if your investment property qualifies.

Property Details

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Enter your property details and click calculate to see your DSCR ratio.

What is DSCR? Debt Service Coverage Ratio compares qualifying rent with the debt service (PITIA). Each investor sets its own minimum ratio; some programs we work with consider ratios down to 0.75.

Step-by-Step Guide

How to Calculate DSCR

1

Determine Monthly Gross Rental Income

Use the actual or projected monthly rent for the property. For short-term rentals, lenders may use AirDNA projections or 12 months of actual income. For long-term rentals, use the lease amount or an appraisal-based market rent.

2

Calculate Monthly PITIA

Add up your total monthly housing expense: Principal + Interest (your loan payment) + property Taxes (annual / 12) + Insurance (annual / 12) + Association/HOA dues. This total is your PITIA.

3

Divide Rent by PITIA

DSCR = Monthly Rent / Monthly PITIA. For example: $3,000 rent / $2,400 PITIA = 1.25 DSCR. This means the property generates 25% more income than its mortgage costs.

4

Compare to Lender Requirements

Each investor sets its own minimum ratio. A higher ratio can improve your pricing tier, and some programs we work with consider ratios down to 0.75 for borrowers with strong credit and reserves.

What is DSCR?

DSCR (Debt Service Coverage Ratio) measures whether a rental property generates enough income to cover its mortgage payment. It's the primary qualification metric for DSCR loans, which allow real estate investors to finance properties based on cash flow rather than personal income or tax returns.

The DSCR Formula

Rent÷PITIA=DSCR

PITIA = Principal + Interest + Taxes + Insurance + Association Dues

DSCR Ranges Explained

Understanding what your DSCR ratio means for loan qualification and pricing.

DSCR RangeRatingWhat It MeansRate Impact
1.25+ExcellentStrong cash flow. Rent exceeds PITIA by 25%+.Clears more program minimums
1.0 – 1.24GoodRent covers PITIA. Meets a 1.0 floor; some programs set a higher one.Program-standard pricing
0.75 – 0.99WorkableRent falls short of PITIA. Select sub-1.0 programs only.Priced for the shortfall
Below 0.75ChallengingSignificant shortfall. May require creative structuring.No-ratio programs or other products

Rate impacts vary by lender, credit score, down payment, and other factors. Contact us for a personalized rate quote.

Pro Tips

Tips to Improve Your DSCR

Increase Rental Income

  • Furnish the property and list as a short-term rental for higher nightly rates
  • Add an ADU (accessory dwelling unit) or convert a garage to increase rent
  • Improve the property to justify higher rents (updated kitchen, new flooring)
  • Rent by the room instead of the full unit for higher total income
  • Research comparable rents — you may be undercharging

Decrease PITIA

  • Increase your down payment to lower the loan amount and monthly P&I
  • Buy down your interest rate with discount points
  • Shop insurance providers — premiums vary significantly by carrier
  • Appeal your property tax assessment if the valuation seems high
  • Choose properties without HOA fees or with lower association dues

DSCR Calculator FAQ

A DSCR of 1.0 means your rent exactly covers your mortgage payment (PITIA), and anything above 1.0 is a cushion. Each investor sets its own minimum and its own pricing tiers; on many programs a larger cushion improves pricing, and some programs accept ratios as low as 0.75.
DSCR is calculated by dividing your monthly gross rental income by your total monthly mortgage payment (PITIA). PITIA includes Principal, Interest, Taxes, Insurance, and Association dues. For example, if the monthly rent is 1.25 times the full PITIA payment, the DSCR is 1.25.
A DSCR of 1.25 means your rental income is 25% more than your total mortgage payment. Put another way, the rent is 1.25 times the full payment. On many programs a cushion like that clears the minimum with room to spare and can improve pricing, depending on the program.
It can be. Each investor sets its own minimum ratio, and some programs we work with consider DSCR ratios as low as 0.75 when the rent does not fully cover the payment. Those programs usually look for compensating factors such as a larger down payment, a higher credit score or more reserves.
PITIA stands for Principal, Interest, Taxes, Insurance, and Association (HOA) dues. These are the total recurring costs of the mortgage. Principal and Interest make up your loan payment. Taxes and Insurance are divided by 12 for monthly amounts. Association dues are monthly HOA fees if applicable.
No. For DSCR loan qualification, lenders use gross rental income divided by PITIA only. Property management fees, maintenance costs, vacancy reserves, and other operating expenses are not factored into the DSCR calculation used for loan qualification.
DTI (Debt-to-Income) measures your personal debts against your personal income and is used for traditional mortgages. DSCR measures a property's rental income against its mortgage payment and is used for investment property loans. The key advantage: DSCR loans don't require personal income verification or tax returns.
There is no single answer: each program sets its own pricing tiers. In general, a larger DSCR cushion, a higher credit score band and a lower loan-to-value each improve pricing on the same program, and a higher DSCR can also open a lower down payment on some programs.

Ready to Get Pre-Qualified?

Now that you know your DSCR, take the next step. Get pre-qualified in 60 seconds or speak directly with a DSCR loan specialist.

Get Pre-Qualified NowCall 480-420-4918

Learn More About DSCR Loans

How to Calculate Your DSCR Ratio

Master the DSCR calculation with our step-by-step guide. Includes examples for single-family, multi-family, and short-term rental properties.

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DSCR Loan Requirements 2026

Credit scores, down payments, DSCR ratios, and everything else you need to qualify for a DSCR loan this year.

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DSCR vs Conventional Loans

How DSCR loans compare to conventional investment property financing — and which is better for investors.

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