Estimates only - rates and terms vary by scenario. Exact figures arrive with your written terms.
What DSCR actually is
One fraction. Rent on top, payment on the bottom. DSCR = monthly rent ÷ the full monthly payment - principal, interest, taxes, insurance, and any HOA (PITIA). The rent figure comes from your lease or the appraiser's market-rent schedule. Repairs, management, utilities, and vacancy never enter the math - lenders qualify the payment, not your operating budget.
Most free calculators get this wrong by subtracting operating expenses first. This one runs the same fraction the lender runs.
Run one in your head
A property rents for $2,800. The all-in payment is $2,330 - that's $1,965 of principal and interest, $250 of taxes, $115 of insurance, no HOA. 2,800 ÷ 2,330 = 1.20. The rent clears the payment with room to spare - a deal most DSCR lenders will look at.
What your number means
- 1.25 and above - strong. This is the classic best-pricing tier.
- 1.0 to 1.24 - qualifies. A DSCR above 1.0 means better terms.
- Below 1.0 - not dead. We have lender options down to 0.75 - expect a bigger down payment and reserves.
- Under 0.75 - restructure: more down payment, interest-only, or higher rent.
How to use this calculator
- Enter the purchase price, expected rent, and your down payment - the loan amount and monthly payment show beside the fields.
- The rate is an editable estimate - exact terms come with your written quote.
- Flip Interest-only to Yes to see how an IO period changes your ratio - it can rescue a marginal deal.
- The two boxes under the result answer the questions that matter: the biggest loan this rent supports at your target DSCR, and the rent you'd need to hit it.
Running a Morby / Stack deal? The DSCR loan is usually the primary lender in the stack - check the whole structure in the Morby / Stack Calculator, or read the DSCR loan deep dive. Questions? Ask in the community.
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