DSCR Calculator

Compute the debt-service coverage ratio on a rental, see the full PITIA breakdown and monthly cash flow, and find the maximum loan that clears 1.0, 1.1, and 1.25 DSCR.

Income & loan
Taxes, insurance & HOA
DSCR
1.16×
Acceptable — qualifies with many lenders
Monthly P&I$1,637.22
Taxes + insurance + HOA$425.00
Monthly PITIA$2,062.22
Monthly cash flowrent − PITIA$337.78
Max loan at target DSCR
At 1.00× DSCR$289,515
At 1.10× DSCR$257,531
At 1.25× DSCR$219,152

Estimates for informational purposes only — not a loan offer, commitment, financial advice, or a lending decision. Program limits shown are illustrative and vary by lender.

How DSCR works

DSCR lenders qualify the property, not your personal income. They compare the rent the property produces to its full monthly housing cost — principal and interest plus taxes, insurance, and HOA (PITIA). Divide rent by PITIA and you have the coverage ratio. Above 1.0, the property carries itself; below 1.0, you're feeding it every month.

Why the max-loan figures matter

Working backward from a target DSCR tells you the largest loan a property can support — which is exactly how a DSCR underwriter sizes the deal. If you need a bigger loan than the 1.25× number, expect either a larger down payment or a pricing adjustment. Toggle interest-only to see how much more leverage an I/O payment unlocks.

Frequently asked questions

What is DSCR?

Debt-service coverage ratio is monthly rent divided by the property's monthly PITIA (principal, interest, taxes, insurance, and HOA). A DSCR of 1.20 means the rent covers 120% of the housing payment.

What DSCR do lenders require?

Most DSCR programs want 1.20–1.25 for best pricing, many go to 1.10, and some allow 1.00 or even below with rate adjustments. Below 1.0 the property runs at a loss and options narrow sharply.

How is the max loan calculated?

We invert the amortization: at a target DSCR, the maximum PITIA is rent ÷ target; subtract taxes/insurance/HOA to get the maximum P&I, then solve the amortization formula for the loan that produces that payment.

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