Real estate finance education
DSCR Calculator
See how a property's rent covers its mortgage payment and quickly calculate the Debt Service Coverage Ratio (DSCR).
Enter the loan and the rent to see the ratio on a fully amortizing payment and on an interest-only payment. The payment structure alone can move a property into a better pricing tier.
- Compare payment structures
- See the ratio as you type
- Make more confident decisions
- Learn as you go
Loan & Property Details
Your Results
Between 1.00 and 1.24 the rent covers the payment, which usually means approval at regular rather than preferred pricing. An interest-only payment raises the ratio by 0.15.
Payment Breakdown (Monthly)
| Line | Fully amortizing | Interest-only |
|---|---|---|
| Principal and interest | $1,896 | $1,625 |
| Property taxes | $379 | $379 |
| Insurance | $100 | $100 |
| HOA | $0 | $0 |
| PITIA | $2,375 | $2,104 |
| Gross monthly rent | $2,850 | $2,850 |
| DSCR | 1.20 | 1.35 |
| Monthly cash flow before other costs | $475 | $746 |
How this is calculated
This calculator divides gross monthly rent by PITIA, the prevailing residential method and the one used across this site. PITIA means principal, interest, taxes, insurance and any homeowners association dues.
The interest-only column charges interest alone on the same balance, which lowers PITIA and raises the ratio without changing the property. Lenders commonly price interest-only about 0.2 to 0.5 percentage points above an amortizing loan, so compare the total cost, not just the ratio.
Some lenders divide net operating income by debt service instead, or divide rent by principal and interest alone. Those methods produce a different ratio from the same property, so ask your lender which formula it uses before relying on any estimate.
This calculator is an estimate for planning. Lenders calculate DSCR in more than one way, and your quoted terms will depend on the full transaction.
DSCRLoans101 is an independent editorial site. We do not originate loans and we are not affiliated with any lender. Every figure on this page comes from published lender materials or primary sources, and we publish the date we verified it.