If you’re a real estate investor trying to scale your portfolio—or just trying to finance your first rental—there’s one question you need answered fast:
Will this property qualify for a DSCR loan?
That’s where a DSCR loan calculator becomes a game-changer.
In this guide, we’ll explain how DSCR loans work, show you how to use a DSCR loan calculator effectively, and walk through an example to help you evaluate your property in seconds. Plus, we’ll connect you with tools to get pre-qualified today.
What Is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan is a type of real estate financing designed specifically for investors. Unlike traditional loans that focus on your personal income, DSCR loans are approved based on the property’s ability to generate rental income relative to its expenses.
DSCR Formula
DSCR = \frac{\text{Net Operating Income (NOI)}}{\text{Annual Debt Service}}
To qualify, most lenders want to see a DSCR of 1.20 or higher, meaning the property generates 20% more income than it costs to service the loan.
Want a deeper dive into the numbers? Check out our Understanding DSCR Ratios article.
Try the DSCR Loan Calculator Now
Use our free DSCR calculator to run the numbers instantly.
You’ll need:
- Estimated monthly rent (from lease or market rent)
- Projected monthly loan payment (PITIA: principal, interest, taxes, insurance, association dues)
Example:
- Monthly Rent: $2,500
- PITIA: $2,000
- DSCR = 2,500 / 2,000 = 1.25
This property qualifies with room to spare.
What’s a Passing Score?
Each lender sets slightly different thresholds. Here’s a general breakdown:
| DSCR Score | Result | Notes |
| 1.25+ | Strong approval | Preferred by most lenders |
| 1.15–1.24 | Acceptable | Some lenders allow this with better credit/down payment |
| 1.00–1.14 | Breakeven or close | May qualify for “No Ratio” programs or with pricing adjustment |
| <1.00 | Below threshold | Likely needs lower loan amount or higher rent |
💡 Some innovative lenders, like those that finance short-term rentals, may approve <1.0 DSCR with additional risk pricing or reserves.
Why Investors Love DSCR Loans
DSCR loans are built for speed, flexibility, and scalability. Key benefits include:
- No personal income docs (No W2s, pay stubs, or tax returns)
- LLC-friendly financing
- Works for short-term rentals (with platforms like AirDNA)
- Faster closings than traditional bank loans
- Unlimited property count for scaling
Learn more in our full DSCR Loans 101 guide.
When to Use a DSCR Calculator
Use this tool whenever you’re:
- Evaluating a new rental purchase
- Considering a refinance (especially cash-out refis)
- Comparing loan scenarios across lenders
- Underwriting short-term or mid-term rentals
For short-term rental investors, also check out: DSCR Loans for Short-Term Rental Properties
Real-World Example: Does Your Property Qualify?
Scenario:
Jake wants to finance a duplex in Florida that earns $3,600/month in total rent. His lender quotes a 30-year loan at 8% with PITI+HOA totaling $2,800/month.
- DSCR = 3,600 / 2,800 = 1.29
✅ This property qualifies easily. Jake is able to close in 21 days and begin cash flowing immediately.
Ready to Get Pre-Qualified?
Want to move fast on a deal? Submit your property scenario and see if you qualify:
👉 Submit Your Deal Here
Takes less than 2 minutes. No credit pull. Fast response.
FAQ: DSCR Loan Calculator
No. You can use a rough estimate, but for best accuracy, input taxes, insurance, and HOA dues.
Yes—most lenders will accept the lower of lease rent or appraised market rent if the unit isn’t leased yet.
You may still qualify through “No Ratio” DSCR loan programs or by increasing your down payment.
Yes, but you’ll want to use AirDNA data or historical booking income when calculating expected rents.
Read Next
- How to Qualify for a DSCR Loan Without Traditional Income Verification
- Comparing DSCR Loans to Traditional Mortgages: Which Is Right for Your Investment?
- Refinancing with DSCR Loans: Unlocking Equity in Your Investment Properties
Final Thoughts: Know Before You Buy
DSCR loans give real estate investors unmatched flexibility—but you need to know if your property qualifies before you commit. The DSCR loan calculator is your first step to faster funding and smarter investing.
📈 Start with the numbers. End with more doors.
👉 See If You Qualify – Submit Your Deal Now
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
