DSCR loan calculator for investment properties.

What Is a DSCR Loan?

A debt service coverage ratio (DSCR) loan is an investment-property financing option where qualification can focus primarily on the property's rental income relative to its housing expense, rather than traditional personal-income documentation. Requirements vary by lender and loan program.

How Is DSCR Calculated?

The formula is simple:

DSCR = Qualifying Monthly Rental Income ÷ Monthly PITIA

For example, if a property's qualifying rent is $4,000 per month and its total monthly PITIA is $3,200, the DSCR is 1.25. The rental income covers the housing payment one and a quarter times.

What Is a Good DSCR for an Investment Property?

Mathematically, a DSCR of 1.00 means the property's qualifying rental income exactly covers its monthly housing payment. Above 1.00, income covers the payment with room to spare. Below 1.00, it does not.

There is no single ratio every lender requires. Minimums, pricing and eligibility vary by lender and loan program, and some programs may permit ratios below 1.00 or have other qualifying requirements.

Can Short-Term Rental Income Be Used for a DSCR Loan?

Depending on the loan program, qualifying income for a short-term rental may potentially be established using acceptable appraisal or rent documentation, historical rental performance, or approved market-rent analysis. Requirements vary by program, so the income methodology matters as much as the income itself. For more background, see the DSCR and investor loan programs overview.

Can AirDNA Be Used for DSCR Qualification?

Some investor loan programs may accept third-party short-term-rental market data, such as AirDNA, under specific guidelines. Others may not. Lisa can review your property and determine which available programs may allow the applicable income methodology for your deal. The short-term rental financing resource center covers AirDNA and projected rental income in more detail, and the Smoky Mountain short-term rental financing guide covers Pigeon Forge, Gatlinburg and Sevierville cabin purchases.

Can I Get a DSCR Loan if the Ratio Is Below 1.00?

Possibly. Some programs may allow a DSCR below 1.00, but terms, down payment, reserves, rates, pricing and eligibility can differ. Every transaction is reviewed on its own numbers, and no calculator result is an approval or commitment to lend.

What Expenses Are Included in This DSCR Calculator?

This calculator includes principal, interest, property taxes, insurance and HOA dues in the monthly PITIA. Lender calculations can differ, so use the result as an educational estimate rather than a loan quote.