DSCR Investment Property Calculator
Qualify on the rent, not your tax returns
A DSCR loan looks at whether the property covers its own payment. No W-2s, no tax returns, no personal debt-to-income calculation. If the rent carries the note, the deal works — whatever your Schedule E says.
The property
Everything here is about the property. None of it is about you.
DSCR programs typically start around 20–25% down. More down means a smaller payment and a higher ratio.
Gross market rent. Lenders confirm it with a rent schedule appraisal (form 1007), and use the lower of actual or market rent.
Debt service coverage ratio
0.00
No credit pull to start · takes about 10 minutes
How DSCR loans work
Conventional investment property financing runs your personal income through a debt-to-income calculation. For anyone self-employed, that’s a problem — your returns are written to minimize income, which is exactly what a lender reads as inability to pay.
A DSCR loan skips that entirely. The question is simply whether the property’s rent covers its own payment. Divide gross monthly rent by the full monthly obligation — principal, interest, taxes, insurance, and HOA — and that ratio is the DSCR.
1.25 and up
The property comfortably covers itself. Generally the best pricing and the widest program choice.
1.00 to 1.25
Rent covers the payment. Qualifies with most lenders, though pricing may be a notch higher.
Below 1.00
The property runs a shortfall. Some programs go lower with more down payment or reserves; others decline.
No tax returns doesn’t mean no underwriting. Expect a credit check, reserve requirements of several months of payments, an appraisal with a rent schedule, and limits based on property type and occupancy. Rates typically run above owner-occupied financing because it’s investment property.
Thresholds vary by lender The 1.00 and 1.25 tiers shown here are common industry reference points, not universal rules. Individual programs set their own minimums, and some calculate DSCR using net rather than gross rent, or exclude HOA. Treat this as a directional estimate and confirm the specific program’s definition before making an offer.
How this is calculated. DSCR is gross monthly rent divided by PITIA — principal and interest on a 30-year fully amortizing loan, plus monthly property taxes at the rate you enter, monthly insurance, and HOA dues. Cash flow is rent minus PITIA. “Rent needed” figures are PITIA multiplied by the target ratio.
Not included: vacancy, maintenance, capital expenditure reserves, property management fees, leasing costs, and utilities — all of which affect real returns even though most DSCR programs exclude them from the ratio itself. Also excluded are mortgage insurance, flood insurance, prepayment penalties (common on investor loans), and closing costs. Interest-only and adjustable structures are not modeled. DSCR loans are non-QM investment property products; rates, minimum ratios, down payment, reserves, and eligibility vary by lender, program, property type, and borrower profile and are subject to change. This is an educational estimate, not a pre-approval, a commitment to lend, or investment advice. Equal Housing Opportunity.