DSCR Calculator Pro 2026 Institutional Audit Dashboard

DSCR Calculator — Free Rental Property Qualifier

Free Real Estate Tool

DSCR Calculator — Free 2026
Rental Property Qualifier

Find out if your rental property qualifies for financing. Enter your income and debt payments and the DSCR calculator shows your ratio and lender status instantly.

1.25Strong DSCR
1.0Minimum to qualify
3Lender tiers shown
$0Cost to use

DSCR Calculator

Debt Service Coverage Ratio for rental properties
$/mo
$/mo
$/mo
Debt Service Coverage Ratio 1.29
Qualifies — Strong
Monthly NOI $0 Net operating income
Annual NOI $0 Annual net income
Annual Debt Service $0 Total yearly payments

DSCR calculator — 4 things investors need to know

1.25 is the magic numberMost conventional lenders want a DSCR of 1.25 or higher. This means the property generates 25% more income than needed to cover its debt. Run your numbers through the DSCR calculator before making an offer.
DSCR loans ignore your incomeUnlike regular mortgages, DSCR loans qualify you based on the property’s cash flow — not your W-2 or tax returns. This makes them ideal for self-employed investors and those with complex income.
NOI does not include mortgageNet Operating Income is rent minus operating expenses — property tax, insurance, maintenance, management fees. Do not include your mortgage payment in the NOI calculation. The DSCR calculator handles this correctly.
Below 1.0 is not always a deal-breakerSome DSCR loan programs go as low as 0.75 for experienced investors with strong reserves. Use the DSCR calculator to find your number, then shop lenders to see who will work with it.

DSCR calculator — lender qualification thresholds

DSCR RangeLender StatusTypical Rate PremiumDown Payment
1.50+Excellent — best termsNo premium20%
1.25–1.49Strong — standard terms+0.25%20–25%
1.0–1.24Marginal — qualifies+0.50–0.75%25–30%
0.75–0.99Limited lenders only+1.0%+30–35%
Below 0.75Does not qualify——

How this DSCR calculator works

Enter your monthly gross rentThis is the total rent you collect before any expenses. If the property rents for $4,500 per month, enter $4,500. Use market rent if the property is vacant.
Enter your monthly operating expensesInclude property tax, insurance, maintenance, and management fees. Do not include your mortgage payment here. On a $400,000 property, typical operating expenses run $600–$1,200 per month.
Enter your monthly mortgage paymentThis is your full PITI payment — principal, interest, taxes if escrowed, and insurance if escrowed. Use our home affordability calculator to estimate your payment before you have a quote.
Read your DSCR and lender statusThe DSCR calculator divides your monthly NOI by your monthly mortgage payment. A ratio of 1.29 means the property generates 29% more than needed to cover its debt. Fannie Mae publishes detailed DSCR requirements for investment properties.
Ready to find a DSCR lender?

Once your DSCR calculator shows a qualifying ratio, the next step is finding a lender who offers DSCR loans. Rates and minimum requirements vary significantly between lenders.

Compare DSCR Loan Rates We may earn a commission if you apply through this link — at no extra cost to you.

DSCR calculator — common questions

What is a good DSCR ratio?

Most lenders require a minimum DSCR of 1.0, meaning the property’s income covers 100% of its debt payments. A DSCR of 1.25 or higher is considered strong and gets you better rates. Below 1.0 means the property does not generate enough income to cover its debt on its own.

How do you calculate DSCR?

DSCR = Net Operating Income divided by total debt service. NOI is gross rent minus operating expenses — not including the mortgage. Annual debt service is your total yearly mortgage payments. This DSCR calculator does both calculations automatically.

What is a DSCR loan?

A DSCR loan qualifies you based on the property’s rental income rather than your personal income. Popular with investors who are self-employed or have complex tax situations. Use the rental ROI calculator to see your full return alongside your DSCR.

What DSCR do most lenders require?

Most conventional lenders require 1.20–1.25. Some DSCR loan programs allow as low as 0.75 for experienced investors with strong reserves. The higher your DSCR, the better your rate and loan terms.

Related tools to use with the DSCR calculator

Cap Rate Calculator Calculate your rental property’s capitalisation rate alongside your DSCR. Rental ROI Calculator Measure your total return including cash flow and appreciation. HELOC Calculator See how much equity you can pull out of an existing property.

Results from this DSCR calculator are estimates for informational purposes only. Actual lender requirements vary. Not financial advice. Always consult a qualified mortgage professional before making investment decisions. Last updated: March 2026.