DSCR Calculator
Calculate your Debt Service Coverage Ratio in seconds. Free tool for rental property investors.
Property Details
Income & Expenses
Your DSCR
Monthly P&I Payment
$0.00/mo
Net Operating Income (NOI)
$0.00/mo
Enter property details to see your DSCR.
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See NOI, cash flow, expense details, LTV, total interest, and more.
Full Breakdown
PITI Monthly Total
$3,200.00
LTV Ratio
72.5%
Total Interest
$187,500.00
Monthly Cash Flow
$450.00
Monthly Taxes
$350.00
Monthly Insurance
$125.00
Monthly HOA
$0.00
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DSCR Calculator — Debt Service Coverage Ratio for Rental Properties
DSCR (Debt Service Coverage Ratio) measures whether a rental property’s income covers its debt obligations. Lenders use it to decide if you qualify for an investment property loan. The formula is simple: DSCR = Net Operating Income ÷ Debt Service. NOI is your annual rental income minus operating expenses (taxes, insurance, maintenance). Debt service is your total annual mortgage payments (principal + interest).
Most lenders require a DSCR of at least 1.20–1.25. A ratio of 1.0 means you break even — every dollar of rent goes to the mortgage. Above 1.25 is considered healthy and gives you cash flow cushion for vacancies and repairs.
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Frequently Asked Questions
What is a good DSCR?
Lenders typically look for a DSCR of 1.20–1.25 or higher. Above 1.25 means the property generates enough income to cover debt service with a 25% cushion. A DSCR below 1.0 means the property operates at a loss.
How do lenders use DSCR?
DSCR is the primary metric for DSCR loans — a type of investment property loan that qualifies you based on the property’s cash flow rather than your personal income. The lender divides the property’s net operating income by its annual debt service. If the ratio meets their minimum (usually 1.20–1.25), you qualify.
What counts as debt service?
Debt service includes your total annual mortgage payments: principal and interest (P&I). It does NOT include taxes, insurance, HOA, or property management — those are operating expenses that reduce NOI. Only the loan payment itself counts toward debt service in the DSCR formula.