DSCR Loan Calculator
Calculate your Debt Service Coverage Ratio, see if you qualify, and understand how rate tiers affect your deal
Property & Loan
Rent & Expenses
$300.00/mo · 1.20% effective rate
$150.00/mo
Your DSCR Ratio
1.03x
Qualifies with some lenders. Expect higher rates (0.25-0.75% premium) and potentially lower LTV (70-75%). The property just covers its debt.
Monthly Rent
$2,000.00
Monthly PITIA
$1,946.93
PITIA Breakdown
Rent Needed to Hit Each Threshold
1.0x (Break-Even)
$1,947
You clear this
1.15x (Standard)
$2,239
Need +$239
1.25x (Best Rate)
$2,434
Need +$434
DSCR Rate Adjustment Tiers
Higher DSCR ratios qualify you for lower interest rates. These are typical adjustments from DSCR lenders (early 2026):
Base rate
Slight premium
Moderate premium
Significant premium
Rent Sensitivity Analysis
See how changing rent affects your DSCR qualification
| Scenario | Rent | PITIA | DSCR | Status |
|---|---|---|---|---|
| Rent -$200 | $1,800 | $1,947 | 0.92x | Does Not Qualify |
| Rent -$100 | $1,900 | $1,947 | 0.98x | Does Not Qualify |
| Current(your deal) | $2,000 | $1,947 | 1.03x | Break-Even Qualification |
| Rent +$100 | $2,100 | $1,947 | 1.08x | Break-Even Qualification |
| Rent +$200 | $2,200 | $1,947 | 1.13x | Break-Even Qualification |
| Rent +$300 | $2,300 | $1,947 | 1.18x | Solid Qualification |
Down Payment Sensitivity
See how increasing your down payment improves DSCR (at 7.0% rate)
| Down Pmt | Loan | PITIA | DSCR | Status |
|---|---|---|---|---|
| 20% down | $240,000 | $2,047 | 0.98x | Does Not Qualify |
| 25% down(current) | $225,000 | $1,947 | 1.03x | Break-Even Qualification |
| 30% down | $210,000 | $1,847 | 1.08x | Break-Even Qualification |
| 35% down | $195,000 | $1,747 | 1.14x | Break-Even Qualification |
| 40% down | $180,000 | $1,648 | 1.21x | Solid Qualification |
How DSCR Is Calculated
DSCR = Monthly Rent / Monthly PITIA
PITIA = Principal + Interest + Taxes + Insurance + Association dues (HOA).
DSCR lenders use the gross monthly rent (verified by an appraiser or existing lease) divided by the total monthly debt service obligation. A DSCR of 1.25x means the property generates 25% more income than needed to cover the mortgage payment.
Unlike conventional loans, DSCR lenders do not verify your personal income, tax returns, or employment. Qualification is based entirely on the property's income relative to its debt service.
DSCR Loans Guide
Full qualification details, rate structures, and strategies
Loan Marketplace
Compare DSCR lenders and get pre-qualified
Get deal analysis tips every Tuesday
The Climb newsletter includes a real deal breakdown with full numbers every week.