If you've been shopping for rental property financing lately, you've probably heard lenders throw around "DSCR" like everyone knows what it means. This calculator cuts through the jargon and shows you the one number that determines whether your investment property qualifies for financing—and what kind of terms you can expect.

Unlike traditional mortgages that scrutinize your tax returns and W-2s, DSCR loans care about one thing: does the property pay for itself? That's a game-changer for investors who've hit conventional lending limits or whose rental income doesn't show up neatly on a tax return.

Plug in your numbers below, and you'll know exactly where you stand before picking up the phone with a lender.

Strip away the finance jargon, and DSCR answers a simple question: Can this property's rent cover its mortgage payment?

A DSCR of 1.0 means you break even—rental income equals your loan payment, dollar for dollar. Above 1.0, and you're cash-flow positive. Below 1.0, and you'd need to cover the gap out of pocket each month.

Lenders obsess over this number because it predicts whether you'll keep making payments even if your personal finances hit a rough patch. A property that pays for itself is a property that's unlikely to default. That's why DSCR has become the golden metric for investment property loans—it lets lenders say "yes" based on the asset, not your personal income situation.

Here's the math:

DSCR = Monthly Rent ÷ PITIA

PITIA is lender-speak for your total monthly housing payment:

• Principal
• Interest
• Taxes (property)
• Insurance (homeowners)
• Association dues (HOA fees, if any)

That's it. Rent divided by payment. Let's see it in action.

You're looking at a $280,000 duplex. Here's how the numbers break down:

This property generates 43% more income than it needs to cover the loan. That's a strong position—you'll have options when you shop for financing.

Here's where most calculator pages fail you—they'll tell you "higher is better" and leave it at that. But what does your specific number mean for getting approved?

Don't panic if you're in the 0.75-0.99 range. Plenty of investors finance there—especially for properties with value-add potential or in appreciating markets. You'll just need to adjust your expectations on rate and down payment.

Step 1: Enter Your Loan Details Plug in the interest rate you expect (or have been quoted), your loan term in months, and your total loan amount. For purchases, that's typically the price minus your down payment.

Step 2: Add Your Property Income Enter monthly Net Operating Income. For a quick estimate, most lenders just use gross rent. For a more accurate picture, subtract property management (typically 8-10%), vacancy allowance (5-8%), and maintenance reserves.

Step 3: See Where You Land Your DSCR appears instantly. Compare it to the table above to understand what it means for your financing options.

Step 4: Play With the Numbers This is where it gets useful. Try a larger down payment—see how it moves your DSCR. Test different interest rates. Figure out exactly what it takes to hit that 1.25 threshold if you're close.

Every lender has their own recipe, but here's what moves the needle in DSCR lending:

DSCR gets you in the door, but these factors determine what's on the other side:

Credit score — 660 is the floor for most lenders. Below 700, you'll pay for it in rate. Above 740, you're in the best tier.

Property type — Single-family rentals are easy. Duplexes and triplexes, still straightforward. Anything 5+ units, short-term rentals, or mixed-use gets more scrutiny (and often better DSCR requirements).

Down payment — More skin in the game can offset a weaker DSCR. If you're at 1.05 with 20% down, try running the numbers at 25%.

Reserves — Having 6-12 months of payments sitting in a bank account makes lenders sleep better at night. It can be the difference between approval and decline on a borderline deal.

This isn't one-size-fits-all. Here's how to think about it:

Go conventional if: You're a W-2 employee with clean tax returns, you have fewer than 4-5 rentals, and you want the absolute lowest rate.

Go DSCR if: You're self-employed, you own multiple properties already, your rental income is strong but your tax returns don't show it (thanks, depreciation), or you need to close fast.

Most investors start conventional and switch to DSCR once they've scaled past the point where traditional lenders get uncomfortable.

If your ratio is coming up short, don't assume the deal is dead. Here's your playbook:

This is the simplest lever you have. A larger down payment means a smaller loan—and a smaller monthly payment.

Real impact on a $300,000 property at 7.25%:

That extra 5-10% down can push you from "barely qualifies" to "competitive terms."

Paying points upfront permanently reduces your rate. Each point (1% of loan amount) typically buys 0.25% off your rate.

On a $250,000 loan at 7.5%, two points ($5,000) might drop you to 7.0%—saving about $85/month and potentially bumping your DSCR from 1.18 to 1.24.

Some DSCR lenders offer 5-10 year interest-only periods. Your payment drops significantly—often 20-30%—which supercharges your DSCR.

The trade-off: you're not building equity during that period, and your payment jumps when principal kicks in. But for investors focused on cash flow now, it's a legitimate tool.

Lenders use the lower of your actual rent or appraised market rent. If you've been under-market, a lease renewal at current rates directly improves your DSCR.

Even a $100/month increase—from $2,200 to $2,300—can move your ratio from 1.16 to 1.21.

Lower PITIA means higher DSCR:

• Shop insurance aggressively. Rates vary wildly. Get 4-5 quotes.
• Appeal your property taxes if assessment seems high relative to comps.
• Question the HOA budget if fees seem inflated for what you're getting.

Every $50/month you shave off expenses is like adding $50/month in rent for DSCR purposes.

No tenant yet? Here's what to expect:

Lenders won't just take your word for what the property will rent for. Instead:

1. The appraiser estimates market rent based on comparable rentals in the area
2. The lender discounts that estimate by 10-25% to account for vacancy risk
3. That discounted number becomes your "rent" for DSCR purposes

• Appraised market rent: $2,200/month
• Lender's haircut: 25%
• Rent used for DSCR: $1,650/month
• Your PITIA: $1,450/month
• Resulting DSCR: 1.14

That 25% discount hurts, but it's manageable. Some lenders only take 10% in stable markets with strong rental demand.

Pro tip: If you can get a signed lease before closing—even at a slightly below-market rate—most lenders will use actual lease terms instead of discounted market rent. That can meaningfully improve your DSCR.

Association fees are part of PITIA but easy to overlook. A $250/month HOA on a condo might be the difference between 1.25 and 1.08 DSCR. Always factor this in before making an offer.

Some calculators want gross rent; others expect NOI. Know which your lender requires. Putting gross rent where they expect NOI makes your deal look better than it is—until underwriting catches it.

Property insurance has spiked in many markets—sometimes 40-50% in the past two years. Get an actual quote from an agent who writes landlord policies. That "estimate" you're using might be $150/month low.

DSCR loan rates move. A lot. The rate you saw online last week might not be available when you apply. Get a real quote before finalizing your analysis, especially on deals where you're close to the minimum threshold.

Your DSCR isn't just a number—it's the key that unlocks (or blocks) your financing options. Run your numbers, see where you land, and go into lender conversations knowing exactly what to expect.

A strong ratio means you shop confidently. A borderline ratio tells you where to focus—whether that's adjusting your down payment, negotiating on price, or targeting lenders who specialize in tighter deals.

And if your DSCR isn't where you want it? Now you have a playbook to improve it.

This calculator provides estimates for educational purposes. Actual loan terms vary by lender and are subject to credit approval and underwriting guidelines. Work with a mortgage professional for guidance specific to your investment strategy.