DSCR Loan Calculator for Rental Property
Qualify for a rental property loan based on the property's income, not yours. Calculate your Debt Service Coverage Ratio to see if you meet lender requirements.
✓ DSCR = NOI ÷ Debt Service
✓ Most lenders require 1.0–1.25+
✓ No personal income verification
Commercial property loan calculator
DSCR, LTV, monthly payment, and amortization schedule.
= $375,000.00
Balloon due at year 10
Used for DSCR calculation only.
What Is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan qualifies you based on the property's rental income rather than your personal W-2 or tax returns. This makes them ideal for real estate investors, self-employed individuals, and anyone with complex income structures.
The DSCR Formula
DSCR = Net Operating Income ÷ Annual Debt Service
NOI = Gross Rent − Vacancy − Operating Expenses (taxes, insurance, maintenance, management)
DSCR Thresholds
| DSCR | Meaning | Lender View |
|---|---|---|
| Below 1.0 | Property loses money | Decline |
| 1.0 | Breaks even | Minimum for some lenders |
| 1.25 | 25% cushion | Standard requirement |
| 1.5+ | Strong cash flow | Best rates available |
Example
A rental property generates $3,000/month gross rent with $600/month operating expenses. Loan payment is $1,800/month. DSCR = ($3,000 − $600) × 12 ÷ ($1,800 × 12) = $28,800 ÷ $21,600 = 1.33 — qualifies with most lenders.