DSCR Loan Calculator

Calculate Your DSCR & Cash Flow

Analyze investment property cash flow and debt service coverage ratio

Investment Property Details

Property Value

Down Payment (0.0%)

DSCR loans typically require 15-25% down

Expected Monthly Rent

Interest Rate (%)

Loan Term

Property Tax (mo)

Insurance (mo)

HOA (mo)

Maintenance (mo)

DSCR Analysis

Debt Service Coverage Ratio

0.00

Below Minimum

Monthly Rent Income$3,000

Principal & Interest$0

Total Monthly Expenses$0

Monthly Cash Flow$0

Monthly Expense Breakdown

Principal & Interest$0

Property Tax$400

Insurance$200

Maintenance$200

Loan Summary

Loan Amount$0

Down Payment$80,000 (0.0%)

DSCR below 1.0 indicates negative cash flow. Consider increasing rent, down payment, or adjusting property expectations.

* DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors. Most lenders require minimum 1.0 DSCR, with better rates at 1.25+. These calculations are estimates only.

Quick Answer

How a DSCR Loan Qualifies

A DSCR loan qualifies on the property's income, not yours. The lender divides gross monthly rent by the full monthly payment — principal, interest, taxes, insurance, and HOA — to get the debt service coverage ratio. At 1.0 the rent exactly covers the payment; most lenders want 1.0 to 1.25, and a stronger ratio buys you a better rate. No tax returns, W-2s, or debt-to-income calculation is involved.

This is the investor product for self-employed borrowers, buyers who already carry several mortgages, and anyone whose tax returns show write-downs that kill a conventional debt-to-income ratio. Expect roughly 20–25% down, reserves, and a rate above conventional in exchange for that flexibility.

What This Calculator Accounts For

The Numbers That Move Your Payment

Rent-to-payment ratio

The DSCR is gross rent divided by PITIA. Below about 1.0 you are looking at a larger down payment or a different property.

Taxes and HOA are in the denominator

High Texas property taxes and MUD or PID assessments push the payment up and the ratio down more than investors from other states expect.

No personal income documentation

Write-offs that sink a conventional application are irrelevant here — the property carries the file.

Down payment drives the ratio

Every extra point of down payment lowers the payment and raises the DSCR, which can move you into better pricing.

FAQs

DSCR Calculator Questions

Quick Answer

Most programs start at 1.0, meaning rent covers the payment exactly. Ratios of 1.25 and higher unlock better pricing. Some lenders go below 1.0 with a larger down payment and higher reserves.

No. That is the point of the product. Qualification rests on the appraisal, a rent schedule or existing lease, your credit score, and your reserves.

Many programs allow it using documented short-term rental income, though some apply a haircut to projected revenue. San Antonio also regulates short-term rentals by permit type, so confirm the property's status first.

Not for a property you never occupy. A common path is to buy with VA, occupy it, then move and retain it as a rental — later purchases go DSCR or conventional.

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