DSCR loan calculator guide
How a DSCR loan calculation works—and why the lender’s method matters.
Learn the basic formula, the income and property-expense inputs, and the limits of a one-number online estimate.
RUNMYDSCR
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Property basics, financing goal, contact, and a clear next step.
DSCR = Eligible Monthly Rent ÷ Qualifying Monthly Property Expense
The basic DSCR formula
A debt service coverage ratio compares eligible rental income with the monthly property expense used by the lender. A ratio of 1.00x means the modeled rent equals the modeled qualifying expense. A higher ratio indicates more rent coverage; a lower ratio indicates less.
The denominator is not always identical
The qualifying property expense can include principal, interest, taxes, hazard insurance, flood insurance, association dues, and other program-specific amounts. Interest-only and amortizing structures may be treated differently. The lender’s current program rules control.
A static educational example
Suppose eligible monthly rent is $5,000 and the qualifying monthly property expense is $4,000. The educational DSCR is $5,000 ÷ $4,000 = 1.25x. That example is not a rate quote or determination for another property.
Why RunMyDSCR starts with a review request
Current pricing, verified value, eligible rent, property type, state, credit profile, and program method are needed before the lender can confirm a personalized DSCR. The short funnel collects the property context first.
Information to have ready
- Eligible rent
- Qualifying property expense
- Current program method
- Lender review
Important limitation
This page is educational. It does not produce a personalized loan payment, PITIA, DSCR, approval, commitment, rate lock, or guaranteed term. Final figures require lender review.
Run the property before you run the loan.
Send the property basics and financing goal to the right DSCR review team.