Use this calculator to estimate a property's debt service coverage ratio (DSCR) based on rental income and monthly debt obligations.
DSCR is a common metric lenders use to evaluate whether a rental property generates enough income to cover its loan payment.
Debt Service Coverage Ratio (DSCR) measures whether a property’s income is enough to cover its debt payment. In general, a DSCR above 1.00 means the property generates more income than the amount needed for debt service.
Lenders often use DSCR to evaluate the risk of a rental property loan. A stronger ratio may indicate more cash flow cushion, while a lower ratio may suggest tighter loan eligibility.
This calculator is for educational purposes only and does not guarantee loan approval or lender terms. Actual underwriting standards vary by lender, credit profile, reserves, property type, and other factors.
In many cases, lenders prefer a DSCR of 1.20 or higher, although actual requirements vary by lender and loan program.
No. A DSCR above 1.00 may help, but lenders also review credit, reserves, property type, and other underwriting factors.
DSCR helps lenders estimate whether a rental property’s income is likely to support its debt payment.