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.