What is a good DSCR for a rental property loan?

Most investor DSCR programs require 1.0–1.25 minimum depending on LTV, credit, and property type. A ratio of 1.25 means NOI covers debt service by 25%.

Does DSCR use gross rent or net operating income?

Lenders underwrite on NOI — effective gross rent after vacancy, minus taxes, insurance, and operating expenses — divided by monthly principal and interest (or interest-only on IO products).

Should I model interest-only or amortizing debt service?

Model both. Bridge and some IO DSCR products use interest-only carry; permanent 30-year refi includes principal and tightens DSCR by $200–$400/mo on the same balance.

Can I qualify for a DSCR loan without W-2 income?

Yes — DSCR loans qualify on property cash flow when leases, appraisal, and ratio support the file. See state hubs like DSCR loans Illinois or DSCR loans Indiana for program context.

DSCR Calculator for Rental Property Investors

Use this DSCR calculator to estimate whether a stabilized rental clears lender coverage requirements before you apply for permanent debt. DSCR equals monthly net operating income (NOI) divided by monthly debt service (principal and interest, or interest-only on bridge products).

For internal quote requests, brokers use our DSCR quote helper (staff workflow). This public calculator is for investor education and BRRRR exit planning — pair results with DSCR statistics 2026 and loan amortization math.

DSCR calculator

Model net operating income against monthly debt service. Results are estimates — not a loan offer.

Income & expenses Gross monthly rent ($) Vacancy rate (%) Monthly property tax ($) Monthly insurance ($) Maintenance & management (% of gross)

Debt service Loan amount ($) Interest rate (% annual) Amortization (years)

Monthly NOI

—

Monthly debt service

—

DSCR ratio

—

Lender threshold

—

How to calculate DSCR on a rental property

DSCR = Monthly NOI ÷ Monthly debt service

Build NOI from the rent roll lenders actually underwrite:

Gross scheduled rent — executed lease amounts, not Zillow ranges
Minus vacancy — often 5%–8% on value-add; 3%–5% on suburban turnkey
Minus taxes, insurance, maintenance, management — use current bills + buffer

Debt service is the full housing payment the lender models — typically P&I on a 30-year DSCR refi, not interest-only bridge carry unless you select IO in the calculator above.

Worked example: $300,000 DSCR refi at 7.75%

Line item	Monthly
Gross rent	$3,200
Vacancy (6%)	−$192
Taxes + insurance	−$575
Maintenance / PM (10% gross)	−$320
NOI	$2,113
P&I on $300K @ 7.75%, 30yr	$2,151
DSCR	0.98 — marginal; drop to 72% LTV or raise rent

Same property on interest-only at 7.75% shows DSCR 1.15 — which is why investors must model the permanent refi payment before acquiring with bridge capital. See DSCR loans Indiana for cash-flow market examples and DSCR loans Washington DC for RLTO-heavy expense loads.

State and metro DSCR programs

Funded deal case studies

See how sponsors modeled DSCR exits on closed files:

Pre-qualify for DSCR financing · (833) 264-7776

Calculator outputs are educational estimates only. Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.