DSCR = Net Operating Income ÷ Annual Debt Service
FAQ
What DSCR do lenders want?
Most DSCR loan programs want at least 1.0–1.25, and many price their best rates at 1.25+. Below 1.0 means the property's income doesn't fully cover its own debt payment.
Does DSCR include my personal income?
No — that's the point of a DSCR loan. Qualification is based on the subject property's rental income covering its own debt service, not your personal W-2 or tax returns.
What debt service is used?
Principal and interest on the loan being underwritten. Some lenders also fold in property taxes, insurance, and HOA dues (PITIA) — check how your specific lender defines it.
Other Calculators
- Cap Rate Calculator
- Cash-on-Cash Return Calculator
- BRRRR Calculator
- Flip Spread Calculator
- 1031 Exchange Calculator
← All calculators · Track this deal in Property Profit Tracker →