DSCR Loan Qualifier Calculator
Check if a rental property qualifies for a DSCR loan. Calculate your debt service coverage ratio, compare against 1.0x and 1.25x lender thresholds, and see the rent you'd need to qualify.
Inputs
Use market rent from a rent schedule (appraisal form 1007) if you have one — that's the number most DSCR lenders use, not your hoped-for rent. Some use the lower of lease and market rent.
Results
- 1.25x+ — meets most lender minimums; best rates typically start here or at 1.5x.
- 1.0x–1.25x — some lenders accept down to 1.0x (or even 0.75x) with larger down payments and higher rates.
- Below 1.0x — the property doesn't cover its own payment; expect significant pricing penalties if approved at all.
- Break-even rent (1.0x): $1,850
DSCR loans qualify the property, not your personal income — most programs skip W-2s and tax returns. Exact requirements vary by lender. Analyze the full deal cash flow →
When to Use This Calculator
Use this calculator before applying for a DSCR loan — whether you're buying a new rental, refinancing out of a BRRRR rehab, or checking if a property you own could qualify. It tells you in seconds whether the property's rent covers its payment by lender standards, and how much rent (or how much smaller a loan) you'd need to hit the common 1.25x minimum.
How It Works
The calculator divides gross monthly rent by PITIA — the total monthly payment of principal, interest, property taxes, insurance, and HOA dues. That's the ratio most DSCR lenders use (some programs qualify on an interest-only payment or use the lower of lease and market rent); lenders typically pull rent from an appraiser's market rent schedule (form 1007) rather than your lease. Results are color-coded against the two thresholds that matter: 1.0x (break-even, the floor for many programs) and 1.25x (the minimum for most lenders' standard pricing). Unlike conventional underwriting, your personal income and DTI never enter the math.
Key Terms
How to Use This DSCR Qualifier (Mini Guide)
DSCR lenders ask one question: does the rent cover the payment? Answer it before they do.
What this calculator checks
It divides gross monthly rent by PITIA (principal, interest, taxes, insurance, and HOA dues) — the ratio most DSCR lenders compute, though qualifying payment and rent definitions vary by program.
You get a color-coded verdict against the 1.0x break-even floor and the 1.25x threshold most lenders use for standard pricing, plus the rent you'd need to hit 1.25x.
Getting the inputs right
Use realistic market rent — lenders will use the appraiser's rent schedule (form 1007), not your optimistic projection. If you're above market, your DSCR will come in lower than this estimate.
Get a real quote for the P&I payment: DSCR rates run roughly 1–2% above conventional, so don't plug in a conventional rate.
Don't forget HOA dues — they count in PITIA and sink many condo deals.
If your ratio comes up short
Increase the down payment — a smaller loan means a smaller payment and a higher DSCR.
Consider an interest-only DSCR product — many lenders qualify on the lower IO payment, though some use an amortizing payment regardless.
Shop lenders: minimums range from 0.75x to 1.25x, and pricing tiers differ. Some deals fail at one shop and price fine at another.
Or reconsider the deal — a property that can't cover its own payment is a negative-cash-flow bet on appreciation.
Next steps
If you pass 1.25x, run the full Rental Property calculator with vacancy, maintenance, and CapEx — DSCR qualifying ignores those, but your bank account won't.
BRRRR investors: check your post-refinance DSCR using the new loan amount at today's rates before committing to the rehab.
Expect 20–25% down, possible prepayment penalties, and the option to close in an LLC.