What is a DSCR calculator?
Your DSCR (debt service coverage ratio) compares a rental or investment property's gross monthly rent to its full monthly debt service: the property taxes, insurance, HOA dues and mortgage payment the loan has to cover. A ratio above 1.0 means the rent covers the full monthly payment on its own. Use the calculator below to estimate your own ratio — type the monthly payment, or enter the loan amount, rate and term to compute it.
Last updated October 21, 2026Free to compare. We match you with lenders and brokers in our network.
How is the DSCR calculated?
Lenders divide the property’s gross monthly rent by the total monthly debt service: property taxes plus insurance plus HOA or other monthly costs plus the principal-and-interest part of the mortgage payment. The formula is:
DSCR = Gross monthly rent ÷ (Property taxes + Insurance + HOA and other monthly costs + Mortgage payment, principal and interest only)
Enter your own numbers below to see your estimated ratio. Type the principal-and-interest part of the mortgage payment directly (without taxes, insurance or HOA dues), or leave the payment blank and enter the loan amount, interest rate and term to have it computed for you.
Condos and planned communities often add HOA dues; include any other recurring property costs here.
Principal and interest only, without taxes, insurance or HOA dues — those have their own fields above and are added on top. Or leave this blank and enter the loan amount, rate and term below to compute the payment.
Free to compare. We match you with lenders and brokers in our network.
| Gross monthly rent | $2,375 |
|---|---|
| Property taxes per month | $250 |
| Homeowners insurance per month | $100 |
| HOA and other monthly costs | $150 |
| Mortgage payment per month (principal and interest) | $1,400 |
| Total monthly debt service | $1,900 |
| DSCR | 1.25 (rent covers the monthly payment 1.25 times) |
Example only, using the calculator's default starting values above — enter your own numbers in the calculator to get your estimate. The mortgage payment is principal and interest only; taxes, insurance and HOA dues are entered separately. Lenders set their own DSCR requirements and can count rent differently; this example is a ratio, not an offer.
How do lenders count rent?
There is no single answer, and it changes the ratio a lender will require. Some lenders qualify on the gross rent, others apply a percentage of it to account for vacancy and management costs, and short-term rental income (Airbnb and similar) is handled differently again — often a percentage of actual or projected income rather than a lease. The way a lender counts rent is part of the deal you should get in writing before you apply.
See our answers on how short-term rental income is counted on a DSCR loan and how to compare DSCR loan quotes.
What DSCR do lenders require?
There is no single standard, and that gives investors room to work with. Each lender sets its own minimum. Ask every lender for its requirements in writing before you apply. Our DSCR minimum-ratio and requirements answer goes into the detail.
Sources
- Consumer Financial Protection Bureau — Regulation Z, which excludes credit made primarily for a business purpose from most of its requirements, so DSCR minimums are set by each lender rather than by a federal rule.
- Office of the Comptroller of the Currency — Comptroller’s Handbook guidance on real estate lending, which says the right ratio depends on how the loan amortizes and how volatile the property’s cash flow is.
What this calculator is not
This calculator produces an estimate only, using the numbers you enter and a standard debt-service formula. It is not a loan offer, a rate lock, a credit decision, or a guarantee of the ratio, rate, or terms any specific lender will actually offer you. Actual DSCR requirements depend on the lender, the property, the lease, and your overall deal.
FreeRateUpdate operates a network of licensed lenders and brokers and may be compensated if you are matched with and choose to work with a network lender. This calculator does not favor, rank, or discourage any specific lender or product in FRU’s network.
Disclosure: This is general information, not advice about your specific situation.