DSCR Loan Calculator
Calculate Debt Service Coverage Ratio (DSCR) for investment property loans — no W-2, no DTI checks, just rent ÷ debt ratio.
| Monthly Rent (NOI input) | — |
| Effective Operating Income (Rent - T&I - Mgmt) | — |
| Debt Service (P&I + sometimes T&I) | — |
| DSCR (Income ÷ Debt) | — |
| Lender Required Minimum | — |
Calculate Debt Service Coverage Ratio (DSCR) for investment property loans — no W-2, no DTI checks, just rent ÷ debt ratio. Sources cited below for methodology and benchmarks.
How to Calculate
DSCR loans qualify investors based on PROPERTY income vs debt, not personal W-2 or DTI. Standard formula: Net Operating Income (rent - taxes - insurance - management - vacancy allowance) ÷ Debt Service (P&I + T&I). Most DSCR lenders use PITI not just P&I for the denominator. Minimum 1.0-1.25 DSCR for approval. Rate based on DSCR tier — 1.5+ gets best rate, 1.0-1.25 gets +0.5%, no-ratio (under 1.0) gets +1.0-2.0%.
Benchmarks and Context
DSCR loans typical terms 2026: 6.5-8.5% rate, 25% down minimum, 30-year fixed or 5-7 year ARM, no DTI check, no employment verification, no tax returns required. Closing costs slightly higher than conventional (3-4% vs 2-3%). Property must cash flow at 1.0 DSCR minimum to qualify even on no-ratio programs.
Common Mistakes
Common mistakes: (1) Forgetting vacancy/management allowance in income (lender requires 5-8%). (2) Using gross rent instead of net for DSCR ratio. (3) Confusing P&I vs PITI in denominator (most lenders use PITI). (4) Trusting pro-forma rent — most lenders use lower of pro-forma or 1007 (market rent) for new acquisitions. (5) Ignoring rate add-ons — sub-1.25 DSCR often costs +0.5-1.0% in rate.
Last updated May 2026. Sources: NAR Commercial, BiggerPockets.