DSCR Calculator

Calculate your Debt Service Coverage Ratio to determine if your investment property qualifies for a DSCR loan. Most lenders require a minimum DSCR of 1.25x.

Property & Loan Details

$
$
$
Your DSCR
0.72x
Below threshold — Does not qualify

Monthly Breakdown

Gross Rent
$2,500
Less: Vacancy (5%)
-$125
Effective Gross Income
$2,375
Less: Operating Expenses
-$800
Net Operating Income (NOI)
$1,575
Monthly Debt Service
$2,201
DSCR (NOI / Debt Service)
0.72x

What DSCR Means

  • 1.25x or higher: Most DSCR lenders require this minimum. Strong qualification.
  • 1.0x - 1.24x: Break-even to marginal. Some lenders will work with 1.0x but expect higher rates.
  • Below 1.0x: Property doesn't cover debt service. Won't qualify for DSCR loans.
Read our complete DSCR Loan Guide →

How DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans allow real estate investors to qualify based on the property's income rather than their personal income. This makes them ideal for investors who are self-employed, have complex tax situations, or want to scale their portfolio quickly without W-2 income requirements.

The formula is simple: DSCR = Net Operating Income / Total Debt Service. A DSCR of 1.25x means the property generates 25% more income than the mortgage payment requires, giving the lender a comfortable cushion.

Common DSCR Lender Requirements

  • Minimum DSCR of 1.0x to 1.25x (varies by lender)
  • Minimum credit score of 620-680
  • Down payment of 20-25%
  • Property must be investment (non-owner occupied)
  • Most lenders cover 1-4 unit residential properties

Read our complete DSCR Loan Guide for detailed qualification requirements, or browse DSCR lenders in our directory.

Stay Ahead of the Market

Get weekly insights on investment property lending — new lender reviews, rate trends, and strategies delivered to your inbox.

No spam, unsubscribe anytime. We respect your privacy.