DSCR (debt service coverage ratio) is the single number that decides a rental property loan: monthly rent ÷ full monthly payment (PITIA) — principal, interest, taxes, insurance, and association dues. The lender never looks at your W-2s or tax returns; the property qualifies itself. This calculator builds the full PITIA from your inputs and divides the rent into it, exactly the way an underwriter does.
Reading your result
1.25× and up is a strong file that most lenders compete for. 1.0–1.25× qualifies broadly at slightly tighter pricing. Below 1.0× means the rent doesn't cover the payment — sub-1.0 programs exist, but leverage caps near 70% and the panel narrows. The two rent targets shown are the thresholds worth engineering toward: more down payment, a lower rate tier, or an interest-only structure all move the ratio.
Full mechanics, prepayment-penalty trade-offs, and LLC vesting live in our DSCR loan guide — and if you're shopping by state, taxes and insurance change this math dramatically (compare Texas against Arizona).
Frequently asked questions
What DSCR do lenders require?
Most programs want at least 1.0×, with the best pricing tiers starting around 1.2–1.25×. Sub-1.0 programs exist at lower leverage and wider pricing.
Does this calculator use my income?
No — that is the point of DSCR lending. The property qualifies on its own rent versus its own payment; your personal income and DTI never enter the math.
What counts as PITIA?
Principal, interest, property taxes, insurance, and association dues. On short-term rentals some lenders also model utilities and management — see our Airbnb loan guide.
How do I improve a weak DSCR?
More down payment (smaller loan, smaller payment), a better rate tier, an interest-only structure, cheaper taxes/insurance, or more rent. Each 5% of extra down payment typically adds several points of coverage.