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DSCR Loan Estimator

DSCR loans qualify the property, not your personal income: no tax returns, no W-2s, no debt-to-income ratio. Enter the rent and the monthly PITIA payment to see your ratio, your approval tier, and the rent you would need to reach the prime 1.25 threshold.

Rent & PITIA

DSCR Ratio

1.08

Gross Rent ÷ PITIA

Monthly PITIA

$2,225

total housing payment

Rent Needed for 1.25

$2,781

minimum market rent

DSCR Ratio Live Gauge1.08x
0.0x (Risk)1.0x (Breakeven)1.25x+ (Prime)

Approval Status

Tier-2 Lender Territory

Approvable at 1.00-1.24 DSCR, but expect higher rates, reduced LTV (70-75%), and 6+ months of reserves.

Calculation Breakdown

Gross Monthly Rent$2,400.00
Principal & Interest$1,625.00
Taxes$420.00
Insurance$180.00
HOA$0.00
Total PITIA$2,225.00
DSCR = Rent ÷ PITIA1.079

Some lenders underwrite at 75-85% of gross rent instead of 100%. At a 75% convention, your effective rent is $1,800 and your DSCR would be 0.81.

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Formulas reviewed by Toheeb Ekundayo · September 12, 2026

How this calculator works

The Debt Service Coverage Ratio is the single number DSCR lenders underwrite against:

DSCR = Gross Monthly Rent ÷ PITIA

PITIA is principal + interest + taxes + insurance + association dues (plus mortgage insurance, if the program requires it). The ratio answers one question: for every dollar of mortgage payment, how many dollars of rent arrive?

The approval tiers

DSCR rangeTypical lender outcome
Below 1.00Unlikely approval. The property loses money monthly; most lenders decline or force a restructure.
1.00 to 1.24Tier-2 pricing. Approvable with a higher rate, reduced LTV (70-75%), and 6+ months of reserves.
1.25 and abovePrime investor rate. Best pricing, up to 80% LTV, easiest approval.
1.50 and aboveSome lenders offer rate discounts or waive reserve requirements.

Why 1.25 is the number that matters

A 1.25 DSCR means rent exceeds the payment by 25%, a cushion that absorbs a vacancy, a missed month, or a repair without the loan going underwater. It is the threshold where lenders’ risk models shift from “conditional approval with pricing penalties” to “clean approval at the best rate.”

The 75% convention trap

Some lenders underwrite at 75-85% of gross rent instead of 100% to model vacancy. The same property can be a 1.30 DSCR at one lender and a 0.98 at another purely because of this convention. The calculator shows both figures so you can pre-screen against either standard before you apply.

Worked example

A fourplex grossing $3,900 per month with a $232,500 loan at 7.5%: principal and interest are about $1,625, taxes $420, insurance $180, for a PITIA of $2,225. DSCR = $3,900 ÷ $2,225 = 1.75. That is prime tier: expect the best rate, 80% LTV availability, and minimal reserves. If the appraiser’s rent schedule instead comes in at $3,400, the DSCR drops to 1.53, still prime but with less cushion. This is why verifying rents before ordering an appraisal matters.

Assumptions and limitations

  • The ratio uses gross rent, matching most DSCR programs. Programs that net out vacancy or management will produce a lower ratio; the 75% figure below the breakdown approximates them.
  • Enter the full PITIA, including HOA dues and any mortgage insurance. Leaving out a line item overstates your ratio.
  • Tier thresholds are industry conventions, not a guarantee. Each lender sets its own cutoffs, LTV caps, reserve requirements, and prepayment penalties; treat the output as a pre-screen, not an approval.

For the full product guide, including 2026 guidelines on down payments, credit scores, reserves, and prepayment penalties, read What is a DSCR loan?. If the numbers are tight, the guide to portfolio lenders covers the main alternative.

Frequently asked questions

What is a good DSCR ratio for an investor loan?
A DSCR of 1.25 or higher is considered prime. It means gross monthly rent covers 125% of the total monthly payment (PITIA), which unlocks the lowest rates, the highest loan-to-value (often 80%), and the simplest underwriting. Ratios between 1.00 and 1.24 are usually approvable with higher rates and lower LTV.
What rent figure should I enter?
For a purchase, use the appraiser's market rent estimate (Form 1007 or 1025) or current signed leases, whichever your lender uses. For a refinance, use in-place leases. Optimistic pro forma rents will not survive underwriting.
Can I get a DSCR loan with a ratio below 1.0?
A DSCR below 1.00 means the property loses money each month. A few specialized lenders offer sub-1.0 or no-ratio programs, but expect materially higher rates, lower LTV (65-70%), and strict reserve requirements. Most investors are better served by renegotiating price or increasing the down payment.
Can I use a DSCR loan on a property I live in?
No. DSCR loans are for investment properties only. If you plan to occupy one unit, use FHA or conventional owner-occupied financing, which also allows much lower down payments. Our homebuyer mortgage calculator models those programs.
Do DSCR loans require income documentation?
Generally no, which is the product's core feature. Expect a credit pull, bank statements to verify reserves, and the property's rent documentation, but no tax returns or employment verification.
Why do two lenders quote different DSCRs on the same property?
Some lenders underwrite at 100% of gross rent, others at 75-85% to model vacancy. The same building can be a 1.30 at one lender and a 0.98 at another purely because of that convention. The calculator shows both figures so you can pre-screen against either standard.

Related investor loan guides