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DSCR loan calculator

Check whether a rental's rent covers its full monthly payment. Free, runs in your browser, and you enter every number yourself.

How do you calculate DSCR?

To calculate DSCR, divide the property’s monthly rent by its full monthly payment, called PITIA: principal, interest, property taxes, insurance and any HOA or association dues. A result of 1.00 means the rent covers the payment exactly. Above 1.00, the rent covers it with room to spare; below 1.00, it falls short.

DSCR = monthly rent ÷ monthly PITIA

DSCR estimate

Run the numbers on a rental.

Enter the rent and the payment, or a loan amount and the rate you want to test. Nothing you type is sent or saved.

Principal and interest
Estimated DSCR—

Estimates for illustration only, not a loan offer or rate quote. Principal and interest only unless you add taxes and insurance. DSCR = monthly rent ÷ monthly PITIA. Lenders set their own rent figure and minimum ratio, and requirements vary by program and are subject to credit approval.

Worked example

Round numbers for illustration only, not a quote:

  • Monthly rent: $3,000
  • PITIA: $1,800 principal and interest + $400 taxes + $250 insurance + $50 HOA = $2,500
  • DSCR: $3,000 ÷ $2,500 = 1.20
  • Most PITIA at a 1.25 target: $3,000 ÷ 1.25 = $2,400 a month

In this example the rent covers the payment with $500 a month to spare. To reach a 1.25 ratio, the full payment would need to come down by $100 a month, or the rent go up.

What the result means

A ratio of 1.00 means the rent covers the payment exactly. Many DSCR lenders look for about 1.00 to 1.25, and a higher ratio can lead to better terms. Some programs allow ratios below 1.00, usually with a larger down payment or other tighter terms. Every lender sets its own minimum and decides which rent figure counts, so your result is a starting point, not an approval.

In Florida, insurance and condo or HOA dues often decide the ratio. Two homes with the same rent can land on either side of 1.00 once wind, flood and association costs are added, so get real quotes for those before you rely on the number. See how DSCR loans work in Florida for documents, LLC closings and short-term rental notes.

FAQ

DSCR calculator questions

How do you calculate DSCR on a rental property?

Divide the property's monthly rent by its monthly PITIA: principal, interest, property taxes, insurance (including flood, if required) and any HOA or association dues. For example, $3,000 of rent against a $2,500 payment is a DSCR of 1.20.

What DSCR do lenders look for?

Many DSCR lenders look for a ratio of about 1.00 to 1.25, and a higher ratio can lead to better terms. Some programs allow ratios below 1.00, usually with a larger down payment or other tighter terms. Requirements vary by investor and are subject to credit approval.

Which rent do DSCR lenders use?

Often the market rent from the appraiser's rent schedule or the current lease, and some programs use the lower of the two. For short-term rentals, some programs accept a rental history or a market data report instead, and may discount it. The lender decides which figure counts, so treat your own number as an estimate.

Do HOA dues and flood insurance count in the DSCR payment?

Yes. DSCR uses the full monthly housing payment, so HOA or condo dues and any required flood or wind coverage are part of it. In South Florida those costs can move the ratio a lot, which is why this calculator has a field for each.

Is this DSCR calculator free, and does it check my credit?

It is free and runs entirely in your browser. Nothing you type is sent or saved, and there is no credit check. It is an estimate for illustration, not a loan offer or rate quote.

Next steps

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