Why DSCR is the number that gets you the loan
DSCR loans qualify the property, not your personal income — no W-2s, no tax returns, no DTI. The single number underwriters care about is the debt service coverage ratio: gross monthly rent divided by the full monthly payment (PITIA). Clear 1.25 and you're in the best pricing tier with most lenders; land between 1.0 and 1.25 and you'll still qualify with a modest rate adjustment; fall below 1.0 and you'll need more down, a rate buydown, or an interest-only structure.
New to these loans? Read our complete guide to DSCR loans — how they work, current rate context, and what lenders look for — then come back and stress-test your deal.
DSCR calculator FAQ
How do lenders calculate DSCR?
DSCR = monthly gross rent ÷ monthly PITIA (principal, interest, taxes, insurance, and association dues). Most DSCR lenders use the lease rent or the appraiser's market-rent estimate (Form 1007), not net operating income.
What DSCR do I need to qualify?
Most lenders want 1.0 or higher, and the best pricing starts around 1.25. Some lenders offer sub-1.0 'no-ratio' programs at higher rates and lower LTVs.
Does vacancy or property management count against my DSCR?
No — lenders qualify on gross rent versus PITIA. Vacancy and management affect your real-world cash flow, which this calculator shows separately.
How can I raise a deal's DSCR?
Increase the down payment, buy down the rate, choose a 40-year or interest-only product, document higher market rent, or negotiate a lower price. Our rate-sensitivity table shows exactly how much a 1% rate move changes your ratio.