DSCR calculator

Debt-Service Coverage Ratio = net operating income ÷ annual debt service. It's the first number a DSCR lender looks at, because the loan is underwritten on the property's income, not your paycheck.

Monthly rent ($)

Vacancy allowance (%)

Monthly operating expenses, excluding mortgage ($)

Loan amount ($)

Interest rate (%)

Loan term (years)

DSCR 1.16

Covers the debt, but most DSCR lenders want 1.20–1.25 minimum. Expect a rate bump, a bigger down payment, or a pass.

Annual NOI: $11,700
Monthly P&I: $839.06
Annual debt service: $10,069

Reading the result

What DSCR do lenders require?: Most DSCR programs want 1.20–1.25 as a floor; the best pricing usually starts around 1.25 and up. Below 1.00 means the rent doesn't cover the mortgage — a few lenders offer “no-ratio” loans for that, at a meaningfully higher rate and lower leverage.
What goes in operating expenses?: Taxes, insurance, management, maintenance, HOA — everything except the loan payment. In high-property-tax states (Texas especially), taxes are the line that kills DSCR — use the post-purchase assessed value, not the seller's current tax bill.
Does vacancy count?: Lenders typically underwrite gross rent from the appraiser's rent schedule (1007 form). We include a vacancy input because you should underwrite your own deal more conservatively than the lender does.

Estimates only. Actual qualification depends on the lender's program, the appraisal rent schedule, and your full file.