DSCR LOAN CALCULATOR · FREE TOOL
DSCR loan calculator for rental property investors
Run the full PITIA, not a two-box estimate. Taxes, insurance, flood and HOA, short-term rental income after the 20% lender haircut, interest-only vs. amortizing, and the rent you need to hit 1.00 and 1.25. Built by a lender who closes DSCR loans every week.
1 · Property type
Long-term rental qualified on the lease or market rent from the appraisal.
2 · Rent
Don’t know the rent? Look up a market rent estimate for the address.
Airbnb / VRBO income
Get the average nightly rate and occupancy for your market from the free AirDNA calculator below.
Why the 20% haircut? Lenders take 20% off gross STR income to cover cleaning, host fees and supplies, so 80% of gross counts toward your DSCR. Some programs count more with a booking history.
Get a free AirDNA estimate ↗How we count STR income ↗
Slide to see how a rent increase moves your DSCR.
3 · Loan
4 · Taxes, insurance and HOA
Flood and HOA are the line items that quietly kill deals. Always include them.
If rent goes up
Targets
Estimate only. This is not a loan approval, commitment or rate quote. Actual terms depend on the property, appraisal, credit and lender guidelines.
HOW IT WORKS
How to calculate DSCR
The debt service coverage ratio tells a lender whether a rental property pays for itself. Divide the rent the lender will count by the full monthly payment.
PITIA is principal, interest, taxes, insurance and association dues. That means homeowners insurance, flood insurance when the property needs it, and HOA dues. Leave one out and your DSCR looks better than the one the lender calculates. Most free calculators skip these. This one doesn’t.
READING YOUR RESULT
What DSCR do you need?
The rent doesn’t fully cover the payment. Many lenders stop here. We still close these with the right structure: interest-only, a different rent method, more down, or a different capital partner.
The property covers its payment. A 1.00 DSCR qualifies with every DSCR program we work with.
Strong coverage. At 1.25 and above you’re into preferred pricing on most programs.
SHORT-TERM RENTALS
How lenders count Airbnb and VRBO income
For a short-term rental, there’s usually no lease. Lenders project the gross income with market data such as AirDNA, then take a 20% haircut to cover cleaning, host fees and supplies. The remaining 80% of gross counts toward your DSCR. Turn on the STR setting above and the calculator applies it for you, so the number you see is close to the number an underwriter will use.
No rental history? No problem. Vacant and newly purchased STRs can qualify on projected income. See our short-term rental loans for how we structure them.
NUMBERS TIGHT?
Six ways to raise your DSCR
Go interest-only
An interest-only period lowers the payment, often enough to move a deal from below 1.00 to qualifying. Compare both side by side above.
Use a 40-year amortization
Stretching the amortization lowers principal and interest and lifts the ratio.
Lower the loan amount
A bigger down payment or lower LTV cuts the payment. The “max loan” line shows exactly where you land.
Pick the right rent method
Lenders count rent differently: lesser of actual or market, market only, actual up to 120% of market, or 100% of actual. We match your deal to the one that counts the most.
Shop the insurance
HOI and flood premiums vary widely. A better quote can be the difference between 0.98 and 1.02.
Change the strategy
The same house can qualify very differently as a long-term, mid-term or short-term rental. Run it each way above.
STRAIGHT ANSWERS
DSCR calculator questions
What is a good DSCR for a rental property?
A 1.00 DSCR means the rent covers the full payment and qualifies with every DSCR program we work with. A DSCR of 1.25 or higher is considered strong and usually earns better pricing. Below 1.00 can still work with the right structure.
What expenses are included in a DSCR calculation?
Lenders use PITIA: principal, interest, property taxes, homeowners insurance, flood insurance when required, and HOA dues. Utilities, maintenance and management are not part of the lender’s DSCR, though you should budget for them.
How do lenders calculate DSCR for a short-term rental?
Most lenders project gross income with market data such as AirDNA, then take a 20% haircut for cleaning, host fees and supplies, so 80% of gross counts toward your DSCR. The calculator applies that haircut when you choose short-term rental.
Does an interest-only loan improve DSCR?
Yes. With interest-only, the payment used in the ratio is interest only, which is lower than a fully amortizing payment, so the DSCR goes up. The calculator shows both side by side.
Can I get a DSCR loan with a ratio below 1.00?
Often, yes. Some programs allow ratios below 1.00, and structure changes such as interest-only, a lower loan amount or a different rent method can lift the ratio. Send us the deal and we’ll show you the path.
Is this calculator a loan approval?
No. It’s an estimate to help you size a deal. Your actual DSCR depends on the appraisal, the rent the lender counts, your rate and the program. Request actual terms and we’ll run the real numbers.
DSCR KINGS · INVESTOR FINANCING
Like the numbers? Let’s make them real.
Send us the deal and get custom DSCR terms in 24–48 business hours. No credit pull to start. Learn more about our DSCR loans.
