DSCR Calculator
Know your debt service coverage ratio before you call the bank. See exactly what rate, rent, or expenses make you lender-ready.
Your Loan
Your Income & Expenses
- Monthly NOI
- $1,520
- Monthly P&I
- $1,482
- DSCR = NOI ÷ P&I
- 1.03
What Would Fix It
- Rent for 1.25 DSCR
- $2,816/mo(+$416)
- Rate for 1.25 DSCR
- 5.26%
- Expense reduction needed
- -$333/mo
What is DSCR and Why It Controls Your Refinance
The Definition
DSCR (Debt Service Coverage Ratio) measures whether a rental property's income covers its mortgage payment. A DSCR of 1.25 means the property earns $1.25 in Net Operating Income for every $1.00 of principal and interest due — the standard minimum for most DSCR loan programs.
DSCR = Monthly NOI ÷ Monthly P&I Payment
Why Lenders Use It
Conventional lenders care about your personal income and DTI ratio. DSCR lenders care only about the property. The DSCR loan program was built for real estate investors who self-employ or hold multiple properties — your tax returns don't enter the picture.
Most lenders set 1.25 as the floor. Some portfolio lenders go to 1.10 or even 1.0, but expect higher rates and stricter terms the closer you get to the edge.
DSCR vs. DTI
Traditional mortgage underwriting uses DTI (debt-to-income): your total monthly debt payments as a percentage of your gross income. DSCR underwriting ignores your personal income entirely. For investors with complex tax situations, high depreciation, or multiple properties, DSCR loans are often the cleaner path — even if the rate is slightly higher.
Related Guides
DSCR Below 1.25: Should I Still Refinance My Rental Property?
What your options are when the numbers don't quite clear the threshold — and which lenders will work with you.
Read →Refinance AnalysisShould I Refinance My Rental Property? A Phoenix SFR Case Study
A 1.125% rate drop, $2,400 in closing costs, and a DSCR that comfortably clears 1.25 — walk through the full decision.
Read →Investor EducationTight Margins: When a Rate Drop Isn't Enough to Refinance Your Rental
High closing costs and thin cash flow can make a refinance not worth it even at a lower rate. Here's how to run the math.
Read →