DSCR calculator
How do you calculate DSCR for a rental property?
Divide the property's gross monthly rent by its monthly PITIA (principal, interest, taxes, insurance and any HOA dues). A result of 1.00 means rent exactly covers the payment; many lenders price best at 1.25 or higher, and some programs allow ratios below 1.00 with larger down payments and reserves.
- Free DSCR loan calculator with live HUD Fair Market Rents.
- Model LTR, STR, and Section 8 rentals with IO toggle, cash-on-cash, and cap rate.
- Every figure shown is an estimate for business-purpose investment property financing only — not an offer or commitment to lend.
- Simply Approved Mortgages is a licensed mortgage broker (NMLS #2620881), licensed for residential lending in Florida and Colorado and arranging business-purpose investor loans across our approved 37-jurisdiction footprint.
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- Gross rent
- $2,600/mo
- Principal & interest
- $1,958/mo
- Taxes
- $350/mo
- Insurance
- $117/mo
- PITIA
- $2,424/mo
- Vacancy (5%)
- -$130/mo
- Management
- -$208/mo
- Est. cash flow
- $-162/mo
Estimates only. Final DSCR and pricing depend on program guidelines, credit tier, property type, and market. Not a commitment to lend.
Using your current price, loan, and expenses — how does DSCR change across LTR, Airbnb, and Section 8?
DSCR calculator loan vs. other investor financing
How lenders commonly read each DSCR tier. Exact cutoffs vary by program.
| Feature | Below 1.00x | 1.00x – 1.24x | 1.25x and above |
|---|---|---|---|
| What it means | Rent falls short of PITIA | Rent covers PITIA | Rent covers PITIA with a cushion |
| Typical treatment | Limited programs, lower leverage | Widely eligible | Strongest pricing tier |
| Reserves | Usually higher | Standard | Standard |
DSCR calculation, step by step
A sample single-family rental with a signed lease.
- Monthly rent
- $2,400
- Principal & interest
- $1,450
- Taxes + insurance
- $450
- PITIA
- $1,450 + $450 = $1,900
- DSCR
- $2,400 ÷ $1,900 = 1.26x
Outcome: A 1.26x ratio lands in the strongest common tier in this sample.
Illustrative only. Not a rate quote, lock, offer, or commitment to lend. Binding terms appear on your Loan Estimate.
Turn Your Calculated DSCR Into a Live Rate
A calculated ratio only tells you half the story — the other half is what the ratio prices at. The options below are the most recent live quotes returned by the pricing engine for a qualifying rental scenario, with the rate, APR, points or lender credit and monthly payment all taken from the same quote.
If the payment you modeled above assumed a rate, replace it: price your actual leverage, credit band and property profile in the rate center and re-run the ratio with a real payment instead of an assumption.
Live pricing unavailable — no current pricing response.
Get My Live DSCR Rates
The cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Rate questions for this page
Why doesn't the calculator show a rate automatically?
The calculator does not price loans. We only display rates returned by the pricing engine for a specific scenario, so nothing on this page is an estimated or sample rate figure.
Which payment should I use in the DSCR formula?
Use the full PITIA — principal and interest plus taxes, insurance, HOA dues and, where applicable, flood insurance. The monthly figure shown with each live quote is principal and interest only.
Compare loan officer compensation on your investor loan quote
Loan officer compensation is part of the cost of a mortgage. Simply Approved Mortgages' lender-paid compensation is 1.5% of the loan amount. Enter the compensation shown on another lender's quote to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs.
A lower payment can improve your property's debt service coverage ratio (DSCR) and monthly cash flow.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank's retail pricing.
Illustration only, not an offer of credit or a Loan Estimate. Simply Approved Mortgages is a mortgage broker (NMLS #2620881), not a direct lender. Lender-paid compensation is paid by the wholesale lender, not directly by you, and a lower compensation figure does not by itself guarantee a lower rate or lower closing costs. Actual rate, fees and credits depend on credit, property, loan program and market conditions. Business-purpose investor loans in eligible states; consumer residential lending in FL and CO only.
Numbers borderline? We'll help you get over the line.
Submit a complete application with address, ZIP, rents, credit authorization, and supporting docs — we.ll model DSCR across long-term, Airbnb, and Section 8 exit strategies and reply with an initial scenario review. Formal pricing follows underwriting.
Get Your Personalized Rate QuoteHow We Evaluate This Scenario
A DSCR file is judged on the property, not your tax returns: qualifying rent divided by PITIA — principal, interest, taxes, insurance, plus HOA and flood where they apply. Most programs use the lesser of the in-place lease rent and the appraiser's market rent, so a lease signed below market usually caps the ratio no matter how strong the comps look.
Three inputs move the outcome more than anything else: rent support on the appraiser's rent schedule (Form 1007 or 1025), the LTV tier, and the credit tier. Dropping leverage by five points or moving up a FICO band frequently changes pricing more than shopping a different lender does.
Before you write an offer, price taxes and insurance at post-sale levels rather than the seller's current bill. In reassess-on-transfer states and in coastal insurance markets, that single adjustment is the most common reason a deal that penciled at contract fails the ratio at underwriting.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.