DSCR Loan Calculator
A DSCR loan qualifies you on the property’s rental income, not your personal income or tax returns — the property either covers its own debt service or it doesn’t. This calculator computes your actual debt service coverage ratio, monthly PITIA, and cash needed at closing, using the same mansion tax, mortgage recording tax, and title insurance math as NestApple’s other NYC closing cost calculators. Already have the numbers on a specific deal? Cross-check them against our Rental Property Calculator and Cap Rate Calculator.
What Is a DSCR Loan?
A DSCR loan qualifies an investment property purchase based on whether the rental income covers the mortgage, taxes, insurance, and HOA — not the borrower’s personal income. Lenders divide monthly rental income by monthly PITIA (principal, interest, taxes, insurance, and association dues) to get the ratio; most require at least 1.25x, though some programs go lower at a rate premium.
| DSCR | What It Means |
|---|---|
| 1.25x or higher | Comfortably covers debt service — the standard minimum most DSCR lenders require |
| 1.00x to 1.25x | Covers debt service but below the common minimum — some lenders still qualify this, usually at a higher rate |
| Below 1.00x | Rental income doesn’t cover PITIA — the property runs a monthly shortfall; most DSCR lenders won’t qualify this without a bigger down payment or higher rent |
Results
Enter a purchase price and monthly rental income below to see your DSCR.
Common Questions
Principal, Interest, Taxes, Insurance, and Association dues (HOA or common charges, if any). DSCR lenders use the full PITIA figure, not just the mortgage payment, because that’s the property’s true monthly obligation.
Because the lender is underwriting the property’s income, not your personal creditworthiness and tax returns, which is a different and generally higher risk profile from the lender’s perspective. In exchange for skipping income verification and tax return review, expect a rate roughly 0.5-2 points above a conventional owner-occupied mortgage, depending on your DSCR, credit, and down payment.
Typically 20-25% or more, higher than many owner-occupied programs, since the lender is relying entirely on the property’s income and value rather than your personal financial profile. A stronger DSCR can sometimes offset a smaller down payment, and vice versa — the two work together in underwriting.
Most DSCR lenders will accept a market rent estimate from an appraiser’s comparable-rent schedule for a vacant or owner-occupied property you’re converting, or the existing lease amount for an already-tenanted one. Policies vary by lender, so confirm which applies to your specific deal before you rely on a projected number.
A conventional investment property loan still qualifies you on your personal income, debt-to-income ratio, and tax returns, with the property’s rental income only partially offsetting your DTI. A DSCR loan skips your personal income entirely and qualifies the property on its own numbers — useful if your tax returns understate your real cash flow, or if you’re scaling a portfolio and don’t want each new loan to depend on your W-2 or personal DTI.
It doesn’t include vacancy allowance, maintenance reserves, or property management fees in the DSCR math — lenders typically calculate DSCR on gross rent against PITIA alone, without those deductions, even though a realistic cash-flow picture should include them. For the fuller cash-flow picture including those costs, use our Rental Property Calculator alongside this one.
