DSCR Calculator
Calculate your debt service coverage ratio — the key metric lenders use to approve investment property loans.
💰 Rental Income
📋 Operating Expenses (Annual)
🏦 Debt Service (Mortgage)
If you enter annual debt service directly, it overrides the loan calculation above.
📊 DSCR Results
💵 Cash Flow After Debt
📊 Income / Expense Ratio
📋 Income & Expense Breakdown
📌 5 DSCR Tips
- ✓ 1.25 is the magic number — most commercial lenders require DSCR ≥ 1.25. Below that, expect higher rates, larger down payments, or a loan denial.
- ✓ NOI excludes mortgage payments — don't subtract your monthly mortgage from income before calculating DSCR. The formula is NOI ÷ debt service, and NOI is pre-financing.
- ✓ Stress test with 8% vacancy — lenders often use a higher vacancy rate than your actual. If DSCR stays above 1.25 at 8% vacancy, you have a safety margin.
- ✓ DSCR loans skip personal income verification — DSCR lenders qualify based on the property's cash flow, not your W-2. Perfect for self-employed investors with complex income.
- ✓ Improve DSCR by raising rent or reducing expenses — a $100/mo rent increase on a $20,000 debt service raises DSCR by 0.06. Small changes move the needle.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or investment advice. DSCR requirements vary by lender, loan type, and market conditions. Always consult with a licensed mortgage professional before making investment decisions.
Related Real Estate Investment Tools
DSCR is one piece of the real estate investment puzzle. Pair it with these calculators to evaluate your property from every angle — cap rate, cash flow, NOI, and overall returns.
- Cap Rate Calculator: Calculate the unlevered yield on your property — the companion metric to DSCR that shows return without financing.
- NOI Calculator: Build a detailed net operating income statement — the numerator in every DSCR calculation, broken down line by line.
- Cash Flow Calculator: Project monthly and annual cash flow after all expenses and debt service — the bottom line DSCR predicts.
- Cash-on-Cash Return Calculator: Measure the annual cash return on your invested capital — what DSCR's coverage ratio means for your pocket.
- Rental Property Calculator: Full investment analysis — project 10-year returns, appreciation, and tax benefits for any rental property.
- Mortgage Calculator: Calculate the monthly principal and interest that make up your annual debt service — the denominator in DSCR.
- Rental Yield Calculator: Compare gross and net rental yields across properties — the income-side metric that drives DSCR higher.
- GRM Calculator: Gross Rent Multiplier — a quick price-to-rent ratio to screen properties before running a full DSCR analysis.
📚 Resources for Real Estate Investors
The 5 Tips above cover the math, but the best investors pair DSCR analysis with the financing, due-diligence, and loan-qualification playbooks below.