DSCR Loan Calculator for Rental Property
See whether a property's own income supports the loan you want.
What This Calculator Does
Divides a property's net operating income by its annual debt service to produce the coverage ratio a lender underwrites, then works backward to show the loan amount that ratio supports.
Who Is This For
Investors buying rental property, foreign nationals without US income documentation, self-employed buyers whose tax returns understate cash flow, and anyone comparing a DSCR loan against a conventional one.
How It Works
Enter expected monthly rent, a vacancy allowance, operating expenses, the loan amount being underwritten, and the rate and term quoted, then set the target DSCR your lender requires to see the resulting ratio and the largest loan that target supports.
Frequently Asked Questions
What does DSCR measure?
Debt service coverage ratio divides net operating income by the annual mortgage payment; a ratio above 1.0 means net operating income exceeds the debt payment, and below 1.0 means it falls short.
What DSCR ratio do lenders typically require?
Minimum requirements vary by lender and program, and a lower ratio often requires a larger down payment or a higher rate; ask your lender for their specific matrix.
Do I need to document my personal income?
A DSCR loan is underwritten primarily on the property's income rather than the borrower's tax returns or W-2s, though lenders still verify credit and reserves.
Can a non-resident buyer use a DSCR loan?
Yes, DSCR loans are a commonly used financing route for international buyers of US investment property, since they do not depend on US income documentation, though a larger down payment is typically expected.