DSCR Loan Calculator
DSCR loans qualify the property, not your paycheck. Enter the expected rent and the property's full monthly payment, and see whether the numbers work the way a lender would look at them.
In short: DSCR is monthly rent divided by the full monthly payment (principal, interest, taxes, insurance, and HOA — "PITIA"). A ratio of 1.0 means the rent covers the payment. Many programs look for roughly 1.0 to 1.25, but programs vary — ask me what fits your deal.
Debt Service Coverage Ratio
1.12
The Monthly Payment (PITIA)
The Math
How DSCR Loans Actually Work
A DSCR loan flips the usual qualification question. Instead of "does this borrower earn enough?", the lender asks "does this property earn enough?" Here's what goes into that answer.
The ratio is simple: rent divided by payment
Take the property's monthly rental income and divide it by the full monthly payment — principal, interest, taxes, insurance, and association dues (lenders call this PITIA). If the rent is $2,800 and the total payment is $2,416, the DSCR is 1.16. That means the property brings in 16% more than it costs to carry each month, at least on paper. A DSCR of exactly 1.0 is the break-even line: rent equals payment.
What ratio do you need?
It depends on the program. Many DSCR programs look for something in the neighborhood of 1.0 to 1.25, and a higher ratio generally opens up more options and better terms. Some programs will lend below 1.0 — even on a property that doesn't fully cover its payment — usually in exchange for a larger down payment or stronger reserves. Guidelines shift as the market shifts, so don't treat any single threshold as a rule. Run your numbers, then ask me what's actually available for your scenario today.
The rent number comes from the appraiser or the lease
You don't get to just name a rent figure. If the property is leased, the lender uses the lease. If it's vacant or a purchase, the appraiser completes a market rent analysis comparing similar rentals nearby. In Tampa Bay, where rents can vary block by block, that appraisal figure is the one that counts. When you're estimating here, be realistic — check comparable listings rather than best-case numbers, because underwriting will.
Taxes and insurance can make or break the ratio in Florida
Florida investment properties don't get a homestead exemption, so property taxes often run higher than an owner-occupant would pay on the same house — and they can be reassessed after the sale. Insurance is the other big swing: landlord policies, wind coverage, and flood insurance (if the property needs it) all land inside PITIA and pull the ratio down. Before you fall in love with a deal, get real quotes for both. A property that looks like a 1.25 with guessed numbers can turn into a 0.95 with actual ones.
DSCR above 1.0 doesn't automatically mean positive cash flow
The ratio only counts the mortgage payment. It doesn't include vacancy, maintenance, property management, turnover costs, or capital expenses like a roof or an AC unit — and in Florida, the AC always goes eventually. Many investors budget a meaningful slice of rent for those items on top of PITIA. So treat DSCR as the lender's qualification lens, and run your own cash-flow math separately before you buy.
What DSCR lenders look at besides the ratio
No tax returns, no W-2s, no personal DTI — but DSCR loans aren't no-questions-asked. Lenders still care about your credit score, your down payment (often larger than an owner-occupied loan), and reserves — cash left after closing, usually measured in months of payments. Most DSCR loans are for investment properties held in your name or an LLC, and many programs allow closing in the LLC directly, which investors like. Every one of those details varies by program, which is exactly the kind of thing I sort out for you.
Frequently asked questions
What is DSCR and how is it calculated?
DSCR stands for debt service coverage ratio. It's the property's monthly rental income divided by its full monthly housing payment — principal, interest, taxes, insurance, and any HOA dues (PITIA). A DSCR of 1.0 means the rent exactly covers the payment. Above 1.0, the property cash-flows on paper; below 1.0, it doesn't.
What DSCR do lenders want to see?
It varies by program. Many DSCR programs look for a ratio around 1.0 to 1.25, and some will go below 1.0 with a larger down payment or other compensating factors. There's no single magic number — programs change, and the right fit depends on your whole picture. Run your numbers here, then ask me what's actually available for your scenario.
Does my personal income matter for a DSCR loan?
That's the whole point of a DSCR loan: qualification is based on the property's rental income, not your personal tax returns or W-2s. Lenders still check credit, down payment, and reserves, but they generally don't calculate a personal debt-to-income ratio. That makes DSCR loans popular with self-employed investors and people scaling a portfolio.
How do lenders determine the rent number?
For a property that's already rented, lenders typically use the lease in place. For a purchase or a vacant unit, the appraiser completes a market rent analysis (often a form called a 1007) that estimates what the property should rent for. Use your best realistic estimate here — actual underwriting will use the appraiser's figure or the lease.
Is this calculator's result what I'll qualify for?
No. This is an educational estimate. Your actual DSCR depends on the appraiser's rent figure, the exact taxes and insurance, and the terms of your loan. Program guidelines change, too. Treat this as a starting point, then get real numbers for your specific property.
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This calculator is for educational and estimation purposes only. It does not constitute a loan offer, pre-approval, or commitment to lend. Actual DSCR requirements, rates, payments, and terms vary by program and will be based on the appraiser's rent analysis and your full profile.