Calculators
DSCR Calculator — qualify your rental property by cash flow, not W-2s
Calculate DSCR, NOI, cap rate, cash-on-cash return, and monthly payment for a rental property. Qualify by property income — not personal W-2s.
How do I calculate DSCR on a rental property?
The DSCR Calculator estimates a rental property's Debt Service Coverage Ratio — gross rental income minus vacancy and operating expenses, divided by the monthly mortgage payment. Lenders typically require DSCR ≥ 1.0 to qualify, and ≥ 1.25 for the best pricing. Use it if you're a real-estate investor financing a 1–4 unit rental and want to qualify on the property's cash flow instead of personal income.
Frequently asked questions
What DSCR ratio do I need to qualify?+
Most DSCR lenders require a minimum DSCR of 1.00 — meaning the property's net operating income at least covers its mortgage payment. A DSCR of 1.25 or higher generally unlocks better rates and higher leverage. Some programs allow DSCR as low as 0.75 with rate or down-payment adjustments.
How is DSCR calculated?+
DSCR = Net Operating Income ÷ Annual Debt Service. NOI is gross rent minus vacancy, taxes, insurance, HOA, and maintenance. Annual Debt Service is your principal-and-interest payment × 12. The calculator handles all of this from your inputs.
Can I get a DSCR loan in an LLC?+
Yes. DSCR loans are designed for investors and almost always allow vesting in an LLC or other business entity. This is one of the program's primary advantages over conventional financing.
What down payment do DSCR loans require?+
Most DSCR lenders require 20–25% down for purchase, with the strongest pricing at 25%+. The calculator lets you select your target LTV so you can model the trade-off between cash-to-close and DSCR.
DSCR Calculator
DSCR (debt service coverage ratio)
0.95
- Status
- Below 1.0 — does not qualify
- Monthly P&I
- $2,360
- NOI (annual)
- $26,880
- Cap rate
- 5.97%
- Cash-on-cash return
- -1.18%
- Cash to close
- $121,875
- Total closing costs
- $9,375
- Loan amount
- $337,500
Ready to pre-qualify for this investment property?
Get pre-qualified in about 8 minutes — no credit pull.
Results are estimates for comparison only. Actual rates, fees, and payments depend on your credit, lender, and market conditions. Not a commitment to lend.
Key facts
- Qualifying basis
- Property cash flow, not W-2s
- Minimum DSCR
- Typically 1.00
- Vesting
- LLC allowed
- Typical LTV
- Up to 80%
Loan program
DSCR Loan
See full program details, eligibility, and benefits.