DSCR calculator
The debt service coverage ratio compares a property's net operating income to its mortgage payments. DSCR lenders use it instead of your personal income.
DSCR
0.92
Annual NOI
$20,760
Annual debt service
$22,655
Monthly payment
$1,888
Many DSCR lenders look for 1.0-1.25 or higher. Lenders differ on how they count taxes, insurance and HOA (PITIA). Ask yours.
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How it's calculated
DSCR = annual NOI ÷ annual debt service.
NOI = rent × (1 − vacancy) − taxes − insurance − HOA − other operating expenses. Debt service = 12 × monthly principal & interest.
FAQ
What DSCR do lenders require?
Commonly 1.0 to 1.25, sometimes lower with higher rates or bigger down payments. Requirements vary by lender and loan program.
Is DSCR the same as cash flow?
No. A DSCR above 1.0 means NOI covers the mortgage, but cash flow also depends on reserves you set aside for CapEx and maintenance.
Estimates only. Not financial, investment, legal or tax advice. Rent estimates come from HUD Fair Market Rents (FY2026 Small Area FMRs), which are 40th-percentile gross rents used for the Housing Choice Voucher program and may differ from market rent. Taxes, insurance and expenses are assumptions you control. Verify every number with your lender, agent and local data before making an offer.