DSCR Calculator
Calculate your Debt Service Coverage Ratio to determine investment property loan eligibility.
Investment Property Cash Flow Analysis
Enter your rental income and expenses to calculate DSCR and loan qualification
Understanding DSCR for Investment Properties
What is DSCR?
Debt Service Coverage Ratio measures how well your rental income covers your debt payments. Lenders use DSCR to evaluate investment property loan applications. A DSCR of 1.0 means income exactly equals debt payments (break-even).
DSCR Requirements
- Below 1.0: Negative cash flow, difficult approval
- 1.0 - 1.24: Minimal cash flow, limited options
- 1.25 - 1.49: Standard requirement for most lenders
- 1.50+: Strong cash flow, best loan terms
Net Operating Income
- Start with gross rental income
- Subtract vacancy allowance (5-10%)
- Subtract operating expenses
- Do NOT include mortgage payments
- Result is your NOI
Improving Your DSCR
- Increase rental income
- Reduce operating expenses
- Make larger down payment
- Choose longer loan term
- Shop for lower interest rate