[ free tool · DSCR calculator ]
DSCR calculator.
free, instant, accurate.
debt service coverage ratio tells lenders whether your rental income covers the mortgage. a DSCR above 1.0 means the property pays for itself — most DSCR lenders require 1.20+.
property inputs
DSCR
1.36
strong
monthly breakdown
gross rent$1,500
P&I payment($787)
taxes($200)
insurance($117)
net cash flow$397
down payment
$37,500
loan amount
$112,500
cash-on-cash
12.7%
total debt svc
$1,103
DSCR · 101
what it is.
why it matters.
one ratio decides whether the bank funds your deal. understand it once, never overpay again.
01
the formula.
DSCR = monthly rent ÷ (P&I + taxes + insurance + HOA). 1.25 means the property generates 25% more than the total monthly payment.
numeratormonthly rent
denominatorPITI + HOA
good zone≥ 1.25
02
the brackets.
most lenders won't fund below 1.20. above 1.25 you get the best rates and terms. below 1.0 means negative cash flow.
< 1.0does not qualify
1.0 – 1.19marginal
1.20 – 1.24qualifies
1.25+strong
03
why DSCR loans win.
no W-2s, no tax returns, no DTI. you qualify based on the property — perfect for self-employed investors or anyone with multiple properties.
credit minimum~620 FICO
down payment20–25%
vestingLLC ok
FAQ
before you commit.
honest, useful answers — no upsell tricks, no fine print.
— minimum DSCR? —
what DSCR do I need to qualify?
most lenders require 1.20 minimum. some accept 1.0 with higher rates or larger down payments. best rates kick in at 1.25+.
— taxes counted? —
does DSCR include property taxes?
yes — the full formula includes P&I, property taxes, insurance, and HOA. some lenders use PITIA.
— vacant properties? —
what if the property is vacant?
DSCR lenders use market rent from an appraisal or rent schedule, not the current lease. an empty house can still clear DSCR.
— typical LTV? —
how much can I borrow?
75–80% LTV for SFR is standard. 70–75% for 2–4 units. some lenders allow 80% with strong DSCR (1.25+).
live · all 50 states
run DSCR on real listings.
Verleon AI calculates DSCR automatically on every active listing in our database — across all 50 states.