DSCR calculator

DSCR is a property's annual net operating income divided by its annual loan payments. A result of 1.00 means rent just covers the debt. Many DSCR lenders look for about 1.20 to 1.25, though the minimum varies by lender and loan.

  • Free, no signup
  • Official county data
  • Formulas published

Rental assumptions

Model rent, financing, and operating costs. Results update as you edit.

Property

Purchase & income

Price, rent, and capital required at closing.

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Operating costs

Vacancy, reserves, and ownership expenses.

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Calculated results

Rental performance

Cash flow and return metrics from your assumptions.

Enter purchase price and monthly rent to see cash flow and DSCR.

Enter assumptions

Complete the required inputs to save.

What does the dscr calculator do?

This calculator works out NOI and your annual principal and interest, then divides one by the other. Change the price, down payment or rate to see what it takes to clear a lender's minimum.

Who should use it?

Investors using DSCR loans, or anyone testing whether a rental can carry its own debt.

What you need to enter

  • Purchase price and down payment
  • Interest rate and term
  • Monthly rent and vacancy
  • Tax, insurance, maintenance and management

How the calculation works

  1. 1Annual rent less vacancy and operating costs gives NOI.
  2. 2The loan amount, rate and term give annual debt service.
  3. 3NOI ÷ annual debt service gives DSCR.

The same formulas run the full workspace and are listed on the formulas page.

Worked example

A $250,000 rental with 25% down at 7.5% over 30 years

NOI
$14,800 a year
Loan
$187,500
Debt service
$15,732 a year
DSCR
0.94

Below 1.00, the rent does not cover the loan payments. A lower price, more down or higher rent would be needed.

How to read the results

  • Below 1.00, the property needs money from you each month.
  • Above your lender's minimum, the deal may qualify. The lender makes the final calculation and may use its own rent figure.

Common mistakes and limits

  • Forgetting that some lenders count taxes and insurance differently from this NOI-based ratio.
  • Using optimistic rent. Lenders often rely on an appraiser's rent estimate.

Questions people ask

1.00 is break-even. Many lenders look for about 1.20 to 1.25, and a higher ratio gives you more room for vacancy and repairs.

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Ready to run your own numbers?

Use the calculator above, or open the full workspace. Your first analysis doesn't need an account.

Open the workspaceSee pricing

Estimates only, not financial, legal or tax advice. Read the disclaimer.