How the DSCR Calculator works

Estimate debt service coverage ratio for rental financing.

Show the math

Formula

DSCR = NOI ÷ annual debt service. Lenders typically require DSCR ≥ 1.20 for rental financing.

Inputs

NOI
Annual debt service

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

What this DSCR calculator is modeling

Debt-service coverage here is an illustration of rent versus the proposed payment. It is not personal DTI, not underwriting, and not a DSCR product overlay. Snapshot as of 2026-08.

Monthly or annual rent: Use supportable market rent or in-place leases, not a listing screenshot. A DSCR investor still haircuts vacancy and expenses. This field is not Schedule E history on properties you already own.
Taxes, insurance, vacancy, and operating expenses: Full-doc rental files use a different worksheet (often Schedule E). DSCR overlays set their own vacancy and expense haircuts. The calculator cannot see your tax returns or your occupancy.
Loan amount, rate, term, required DSCR: The typed rate is not a quote or APR. Required DSCR (often around 1.0–1.25 depending on the investor) is an overlay, not a published right. Occupancy on a DSCR purchase is typically investment.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

DSCR loan: An investment-property loan qualified on the property’s rental income rather than the borrower’s personal income.
NOI (Net Operating Income): Income after operating expenses but before debt service, taxes on income, and capital expenditures.
DSCR (Debt Service Coverage Ratio): Net operating income divided by annual debt service: how many times the property covers its own loan payment.

Browse the full real estate glossary

Related education

Investment property financing: DSCR, occupancy, and house-hacking

DSCR vs full-doc rental qualification, occupancy types, cash-out to buy a rental, and FHA duplex house-hacks. Informational only, not occupancy coaching.

DSCR vs Full-Doc Rental Loan

DSCR qualifies on the property’s rent versus the payment. Full-doc qualifies the borrower. Occupancy, documents, and pricing differ. Not a quote.

Rental Income on Schedule E in a Purchase File

How existing rental income on Schedule E is averaged on a purchase, depreciation add-backs, and why proposed rent on a house you do not own yet is a different calculation.

Utah home loans

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Contact Ondo

Book a call or send a message. Asking is not a loan application.

Debt Service Coverage Ratio Calculator

Property Information

Monthly Rent

Annual Rent (optional, leave 0 to use monthly × 12)

Annual Property Tax

Annual Insurance

Annual Maintenance

Property Management (% of gross rent)

Vacancy Rate

Other Annual Expenses

Loan Amount

Interest Rate

Loan Term (years)

Required DSCR (for max loan calculation)

About DSCR

What It Measures:

Property's ability to cover debt service
Key metric for investment property lenders
NOI divided by annual debt service
Higher DSCR = lower default risk
Critical for qualifying for investment loans

Lender Requirements:

1.20-1.25: Minimum for most lenders
1.25-1.35: Preferred by many lenders
1.35+: Stronger coverage; pricing is still file-specific, not a “best rate”
< 1.0: Negative cash flow, unlikely to qualify
Requirements vary by lender and property type