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DSCR calculator.

Debt service coverage ratio for a rental property loan: monthly rent divided by the full payment (principal, interest, taxes, insurance and association dues). It also shows the stricter NOI-based ratio and the largest loan that still meets your target DSCR. DSCR loans are mainly a US product; the ratio itself works anywhere.

Currency Monthly rent $Lenders usually use the lease or the appraiser's market rent. Monthly property taxes $ Monthly insurance $ Monthly HOA / association dues $ Other monthly operating costs (management, repairs, vacancy) $Used only for the NOI-based ratio. Loan amount $ Interest rate % Term (years) Payment type Target DSCRMany DSCR lenders look for at least 1.0 to 1.25. Check yours.

DSCR (rent ÷ PITIA)

—

Principal & interest—

PITIA (full payment)—

Monthly cash flow after PITIA and other costs—

NOI-based DSCR—

Maximum loan at target DSCR—

The formula

PITIA = principal & interest + property taxes + insurance + association dues DSCR (lender style) = monthly rent ÷ PITIA NOI = rent − taxes − insurance − dues − other operating costs DSCR (NOI-based) = NOI ÷ principal & interest Maximum loan = the loan whose PITIA equals rent ÷ target DSCR

Worked example

Rent is $2,400 a month. A $260,000 loan at 7.25% over 30 years costs $1,774 in principal and interest. Add $300 of taxes and $120 of insurance and PITIA is $2,194. DSCR is 2400 ÷ 2194 = 1.09.

Questions

What is DSCR in real estate?

The debt service coverage ratio compares a property's rent to its loan payment. A DSCR of 1.25 means the rent is 25% more than the payment. DSCR lenders qualify the property on this ratio instead of the borrower's personal income.

What DSCR do lenders require?

Requirements vary by lender and change with the market. Many DSCR lenders look for at least 1.0 to 1.25, and some offer programs below 1.0 with larger down payments or higher rates. Use the target field to test the number your lender gives you.

Why are there two DSCR numbers?

Most DSCR lenders divide rent by PITIA (principal, interest, taxes, insurance and association dues). Commercial lenders and many investors use net operating income divided by debt service, which also subtracts management, repairs and vacancy. The NOI-based number is stricter and closer to real cash flow.

Does interest-only change DSCR?

Yes. An interest-only payment is smaller, so the ratio is higher. Some lenders qualify interest-only loans on the interest-only payment and others on the fully amortizing one. Try both settings.

How do I keep DSCR visible across deals?

Put rent, taxes, insurance, dues and loan terms on the deal record in your CRM, calculate DSCR as a formula, and block a deal from moving to financing when it is under your lender's minimum.

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Last updated October 2026. For planning only, not financial, tax or legal advice. Check figures with your lender, accountant or lawyer.

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