🏦 Financing
DSCR
Calculator
Calculate your Debt Service Coverage Ratio and see if your property qualifies for a DSCR loan. Most lenders require a minimum of 1.20-1.25.
What is DSCR? Debt Service Coverage Ratio = NOI ÷ Annual Debt Service. A DSCR of 1.25 means the property generates 25% more income than its debt payments. DSCR loans qualify based on rental income only — not the borrower's personal income — making them popular for investors with multiple properties or self-employed borrowers.
🔧 Annual Operating Expenses
Debt Service Coverage Ratio
0.00x
NOI $0 ÷ Annual Debt Service $0
Annual NOI
$0
Income minus opex
Annual Debt Service
$0
Total mortgage payments
Monthly Mortgage
$0
Principal + interest
Lender Decision
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Typical DSCR requirements
DSCR Lender Benchmarks
DSCR < 1.0 — Property doesn't cover debt❌ Won't qualify
DSCR 1.0–1.19 — Minimal cushion❌ Most lenders decline
DSCR 1.20–1.24 — Minimum threshold⚠️ Some portfolio lenders
DSCR 1.25–1.49 — Standard qualifying✅ Most DSCR lenders
DSCR 1.50+ — Strong deal✅ Best rates available
Your DSCR—
Find a DSCR lender for your deal
DSCR loans qualify on rental income only — no W2 or tax returns required. Compare rates now.
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Frequently Asked Questions
What DSCR do I need to qualify for a loan? ▾
Most DSCR lenders require a minimum of 1.20-1.25. Some aggressive portfolio lenders will go down to 1.0 (break-even) for strong borrowers or properties in strong markets. At 1.25+, you have access to most lenders and competitive rates. At 1.50+, you'll get the best rates available. Some lenders also offer 'No DSCR' or 'DSCR 0' loans for properties with no rental history — typically at higher rates.
How is DSCR calculated for a rental property? ▾
DSCR = NOI ÷ Annual Debt Service. NOI = (Gross Rent × (1 - Vacancy Rate)) - Operating Expenses. Annual Debt Service = Monthly Mortgage Payment × 12. Note: Some lenders use gross rent divided by PITIA (principal, interest, taxes, insurance, HOA) rather than NOI — this produces a different number. Always confirm the lender's specific calculation method.
How can I improve my DSCR? ▾
To improve DSCR: (1) Increase rent — even a small rent increase has a big NOI impact; (2) Reduce operating expenses — negotiate lower management fees, shop insurance; (3) Reduce the loan amount — larger down payment means lower debt service; (4) Extend the loan term — a 30-year mortgage has lower payments than 15-year; (5) Find a lower interest rate. Each of these directly improves your NOI-to-debt-service ratio.