DSCR Calculator
Calculate your Debt Service Coverage Ratio to evaluate investment property financing
DSCR calculation:
Enter values to calculate DSCR
How to calculate DSCR
Our debt service coverage ratio calculator uses the following formula:
DSCR = Rent ÷ PITIA
PITIA Breakdown:
- P = Principal
- I = Interest
- T = Taxes
- I = Insurance
- A = Association Dues
What is a 1.25 DSCR?
A 1.25 DSCR means your property income covers the total debt service and leaves 25% extra for your income.
Minimum acceptable DSCR
Most lenders want a minimum ratio of 1:1, but some will do no ratio. No ratio means they don't care if the gross rental income is greater than the total housing payment. If your property doesn't ratio, it is riskier to the bank, so the interest rate and upfront fees will be higher. The better the ratio, the better the terms your property will qualify for.
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