What is a good DSCR for a rental property?

Acceptable DSCR thresholds vary by lender and program. Many programs look for a ratio at or above 1.00, and some offer options below that with different terms. A higher ratio generally indicates stronger income coverage relative to the measured debt obligation.

Does this calculator determine if I qualify?

No. This tool provides an educational estimate only. Actual qualification depends on the specific program, property, borrower, income method, reserves, leverage, underwriting, investor guidelines, and applicable law.

PITIA stands for principal, interest, taxes, insurance, and association dues (such as HOA). Many DSCR programs measure the debt obligation using monthly PITIA rather than the mortgage payment alone.

What income can be used in the DSCR calculation?

Depending on the program, lenders may use in-place lease income, market rent from an appraisal, or documented short-term rental income. The method used affects the resulting ratio, so the same property can produce different figures under different programs.

DSCR Calculator for Rental Property

A DSCR calculator estimates a property's debt service coverage ratio by dividing its qualifying rental income by its monthly debt obligation (often PITIA). Enter your figures below to see an estimated ratio. Results are illustrative only and are not a qualification decision, offer, or specific loan terms.

Run the Numbers

Does the Property Cash Flow?

Enter the property's rent and monthly housing expense to see an estimated DSCR.

DSCR Calculator

Monthly Gross Rent

Loan Amount

Monthly Property Taxes

Monthly Insurance

Monthly HOA Dues

Planning Interest Rate

Try a planning rate:

For scenario planning only — not a rate quote. DSCR pricing varies based on the loan, property, borrower, leverage, program, market conditions, and other factors.

Monthly Principal & Interest$1,923

Estimated PITIA$2,493

Estimated DSCR

1.28x

Strong Cash Flow

This scenario may fit available DSCR programs. Final eligibility depends on full loan, property, borrower, and investor guidelines.

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How to Calculate DSCR

DSCR (debt service coverage ratio) is generally calculated by dividing a property’s qualifying rental income by its debt obligation for the same period. Many lenders express this as monthly gross rent divided by monthly PITIA (principal, interest, taxes, insurance, and any association dues).

A ratio of 1.00 means income and the measured debt obligation are roughly equal. A ratio above 1.00 indicates income exceeds that obligation, while a ratio below 1.00 indicates it does not. Exact inputs, income methods, and thresholds vary by lender and investor guidelines.

DSCR = Qualifying Rental Income ÷ Debt Obligation (e.g., PITIA)
Some programs use market rent from an appraisal; others may use lease or short-term rental income
Minimum acceptable DSCR, reserves, and leverage differ by program

Why DSCR Matters for Investors

DSCR-based programs focus on whether a property’s income supports its financing rather than relying primarily on the borrower’s personal income. This can make DSCR loans a fit for investors with multiple properties or non-traditional income documentation.

Because the calculation depends on how each lender defines income and debt, the figure produced by any calculator is an estimate for planning only — not a qualification decision or an offer.

Frequently Asked Questions

What is a good DSCR for a rental property?: Acceptable DSCR thresholds vary by lender and program. Many programs look for a ratio at or above 1.00, and some offer options below that with different terms. A higher ratio generally indicates stronger income coverage relative to the measured debt obligation.
Does this calculator determine if I qualify?: No. This tool provides an educational estimate only. Actual qualification depends on the specific program, property, borrower, income method, reserves, leverage, underwriting, investor guidelines, and applicable law.
What is PITIA?: PITIA stands for principal, interest, taxes, insurance, and association dues (such as HOA). Many DSCR programs measure the debt obligation using monthly PITIA rather than the mortgage payment alone.
What income can be used in the DSCR calculation?: Depending on the program, lenders may use in-place lease income, market rent from an appraisal, or documented short-term rental income. The method used affects the resulting ratio, so the same property can produce different figures under different programs.

This calculator is provided for general educational purposes only and produces estimates based on the values you enter. It is not a commitment to lend, an offer, a qualification decision, or specific loan terms. DSCR methods and thresholds vary by lender and investor. Simple DSCR is an assumed business name of WooHoo Mortgage LLC, NMLS #2347993.