Raise documented income
Use supportable market rent, documented parking or legal-unit income, and a full-year short-term-rental history where the lender allows it. Do not manufacture or inflate a lease.
Find out whether the rent covers the estimated loan payment, and see what the ratio means for leverage, cash flow, and lender conversations.
Jump to the calculatorNothing is saved or sent to a lender.
DSCR answers one narrow question: does this property's rent cover its estimated mortgage obligation?
At 1.00, rent and estimated debt service are equal. At 1.25, rent is 25% higher than the estimated payment. Below 1.00, the owner funds the shortfall.
DSCR is a lending metric, not a complete investment metric. It can exclude management, vacancy, repairs, capital expenses, and your time. Run the lender's math and your own.
| Reference band | Plain-language interpretation |
|---|---|
| 1.25 and above | Stronger payment cushion |
| 1.00 to 1.24 | Payment covered, with a thinner cushion |
| Below 1.00 | Estimated monthly shortfall |
Monthly rental income divided by monthly debt service, commonly expressed as PITIA.
Monthly debt service: $2,040
DSCR: $2,400 ÷ $2,040 = 1.18
Example figures are illustrative and do not reflect current market rates or any lender's pricing.
Ask which rent counts, how an interest-only period is handled, how short-term-rental income is documented and discounted, and whether the program uses a residential PITIA or commercial NOI method.
There are only two levers: raise documented income or lower the payment.
Use supportable market rent, documented parking or legal-unit income, and a full-year short-term-rental history where the lender allows it. Do not manufacture or inflate a lease.
Model more money down, a lower purchase price, a priced interest-only option, rate-buydown break-even, insurance alternatives, and supportable property-tax assumptions.
For lending discussions, 1.25 is commonly treated as a stronger-coverage reference point, while 1.00 is break-even. Your investment threshold and a lender's current program threshold are separate decisions.
They do not change the primary DSCR result because many residential DSCR calculations focus on gross rent and PITIA. Open the advanced assumptions to include vacancy, management, and maintenance in the real cash-flow estimate.
Residential programs often compare gross monthly rent with PITIA, while commercial and larger multifamily lending may use net operating income. Confirm the exact method with the lender.
Not always. Differences usually come from the rent figure, HOA treatment, interest-only assumptions, taxes, insurance, or program-specific expense rules.
No. It is an estimate based only on the inputs on this device. It is not a quote, pre-approval, offer of credit, or lending decision.
Your calculation stays on this device. Use it to ask lenders for comparable terms on the same property and financing assumptions.