Free Tool
DSCR Calculator
Two calculation modes: residential investment property and commercial real estate. Estimates only — not an offer to lend.
Select calculation mode:
Residential Investment Property
DSCR = Monthly Qualifying Rent ÷ (P&I + Taxes + Insurance + HOA)
Results & Method
Enter values and click Calculate to see results.
Estimates only. Not an offer or commitment to lend. Actual loan terms, qualification criteria, and DSCR requirements vary by program, lender, and underwriting. Consult a licensed loan officer for a formal analysis.
How DSCR Is Calculated
Residential Investment Property
Formula: DSCR = Monthly Qualifying Rent ÷ Total Monthly Housing Payment
The denominator is the full PITIA payment: principal and interest (or interest-only payment for I/O loans), plus monthly property taxes, insurance, and association dues. Taxes and insurance are included in the denominator — they are not subtracted from rent before dividing.
Example: $3,000 monthly rent ÷ $2,400 total monthly housing payment (P&I + taxes + insurance + HOA) = 1.25 DSCR
Commercial Property
Formula: DSCR = Annual Net Operating Income ÷ Annual Debt Service
NOI is gross rental income minus operating expenses — property taxes, insurance, management fees, maintenance, utilities, and a vacancy allowance. NOI excludes mortgage payments, income taxes, depreciation, and capital expenditures.
Example: $125,000 annual NOI ÷ $100,000 annual debt service = 1.25 DSCR
Interest-Only Loans
For interest-only loans, substitute the monthly interest payment for the P&I payment in the denominator. The principal balance does not amortize during the I/O period, so the full loan amount remains due at maturity.
Example: $1,000,000 at 12% annual interest = $10,000 monthly interest payment. The full $1,000,000 principal is due at maturity.