DSCR Calculator

How does this DSCR estimate work?

For a purchase, enter the price, your planned down payment, and a supportable rent figure. For a refinance, enter the value, current balance, and the amount you hope to take out. You choose the sample rate yourself. I do not assign one based on credit or the ratio. The sample rate is for estimating only, not a quote. The taxes and insurance figures here are rough estimates, not a property quote. Ask for actual property information before relying on the result. Credit, reserves, property condition, permitted rental use, and closing structure still matter. Call or text me to review the complete file and discuss the programs that may apply to your rental.

Short term rental version

If you are using this as an airbnb mortgage calculator, the income you enter is the most important variable. You can enter a 12 month history averaged across the year, a professional projection, or the property's long term market rent. Do not enter a peak month, as DSCR is always calculated on an annual average to account for seasonality. A common strategy for conservative estimates is to try the long term rent first to see the floor of your coverage. For more details on qualifying, see our short term rental loans page.

How the DSCR calculation works

DSCR stands for debt service coverage ratio. It is calculated by dividing the gross monthly rental income by the full monthly housing payment, often referred to as PITIA. The payment components include principal and interest, property taxes, homeowner's insurance, and any applicable HOA or association dues. This calculation differs from Net Operating Income (NOI) used in commercial real estate, as NOI generally measures income before debt service. In a DSCR environment, the maximum loan amount is often worked back from the rent: once the market rent is established, the lender determines the maximum payment allowed to maintain the program's required coverage ratio.