How to Use This Calculator
Enter the monthly rent the lender is likely to use: market rent from an appraisal for a purchase, or your lease for a rented property. Add the price, your down payment, and a rate you've been quoted. Then add yearly taxes and insurance, and the monthly HOA if there is one.
The calculator shows your DSCR, the full monthly payment, and the largest loan that would still hit 1.00x and 1.25x. If you're close to a threshold, try a larger down payment or interest-only to see how much it moves.
DSCR Calculator FAQ
What DSCR do I need to qualify?
Most DSCR programs require 1.00x or higher, meaning the rent covers the full payment. Some lenders allow lower ratios, or no ratio, with a larger down payment and stronger credit.
Why might a lender's DSCR differ from mine?
Lenders use the appraiser's market rent or the lower of lease and market rent, and they estimate taxes on your purchase price. Their insurance and HOA figures come from your actual quotes and documents. Small differences can move the ratio.
Does interest-only help my DSCR?
Usually. Many lenders qualify interest-only loans on the interest-only payment, which is lower than a fully amortizing payment, so the ratio goes up. Interest-only typically adds to the rate.