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Free DSCR Calculator

DSCR calculator for rental property loans.

DSCR (debt service coverage ratio) is a rental property’s monthly rent divided by its full monthly payment: principal, interest, taxes, insurance, and HOA. Enter your numbers to estimate your DSCR. LGV Capital DSCR loans qualify from a 0.75 DSCR.

Property & loan
Loan purpose

Your estimate, not a quote

Payment type
Rental income

Executed lease or market rent from the appraisal.

Taxes, insurance & HOA (included in DSCR)

Your DSCR estimate

Updates as you type

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Enter your numbers

Total payment / mo

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Cash flow / mo

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Rent needed for 1.25 DSCR

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Enter rent, loan amount, and rate to see your result.

      • Principal & interest——
      • Taxes——
      • Insurance——
      • HOA——
      • Total monthly payment—

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      No application fee. No obligation to proceed.

      Estimate only. Not a loan offer, rate quote, or commitment to lend. Final terms depend on credit, property, leverage, reserves, appraisal, and full underwriting.

      DSCR Qualification Guide

      Your DSCR doesn’t have to be perfect.

      A DSCR of 1.00 means rent exactly covers the monthly payment, and 1.25 or higher is strong coverage. LGV Capital DSCR loans qualify from a 0.75 DSCR. Here’s what your ratio means for your loan.

      • 1.25+

        Excellent

        Strong coverage

        Rent covers the full payment with room to spare. Higher DSCR generally supports better pricing and leverage.

        Payment covered
        125% or more
        Cash flow
        Positive
        At LGV Capital
        Eligible

      • 1.00 – 1.24

        Solid

        Covers the payment

        The property covers its full monthly payment. Final terms depend on leverage, credit, reserves, and the property.

        Payment covered
        100–124%
        Cash flow
        Break-even or positive
        At LGV Capital
        Eligible
      • Qualifies at LGV Capital

        0.75 – 0.99

        Qualifies

        Meets the 0.75 minimum

        Rent doesn’t fully cover the payment, but the property may still qualify with LGV Capital. Lower leverage, stronger credit, or added reserves may apply.

        Payment covered
        75–99%
        Cash flow
        Negative
        At LGV Capital
        Eligible

      • Below 0.75

        Needs review

        Below the 0.75 minimum

        Below the minimum as structured. An interest-only payment, a smaller loan, or higher rent can bring the deal into range.

        Payment covered
        Under 75%
        Cash flow
        Negative
        At LGV Capital
        Restructure needed

      Loan terms also depend on credit, reserves, leverage, property type, and full underwriting. These ranges are a guide, not a guarantee of pricing or leverage.

      Think your property might qualify? LGV Capital DSCR loans qualify from a 0.75 DSCR, giving investors more flexibility when a property’s cash flow doesn’t reach 1.00. Don’t know your DSCR yet? Use the calculator above.

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      How DSCR Is Calculated

      The math behind your number.

      DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA). It’s a simple ratio, but the inputs matter. Here’s the formula with a worked example.

      The formula

      • Principal: the part of the payment that pays down the loan balance.
      • Interest: the cost of borrowing on the remaining balance. On an interest-only loan, this is the full payment.
      • Taxes: annual property taxes divided by 12.
      • Insurance: annual hazard insurance divided by 12.
      • Association: monthly HOA dues, if any.

      Worked example

      $350,000 loan on a $437,500 rental, 6.99% 30-year fixed

      Monthly rent
      $3,600
      Principal & interest
      $2,326
      Property taxes ($4,800/yr ÷ 12)
      $400
      Insurance ($1,200/yr ÷ 12)
      $100
      HOA
      $0
      Total monthly PITIA
      $2,826

      DSCR

      $3,600 ÷ $2,826

      1.27

      Strong coverage

      Common mistakes that skew DSCR

      1. Leaving out taxes and insurance

        Lenders use the full PITIA. In the example, principal and interest alone show 1.55. The real DSCR is 1.27.

      2. Using an optimistic rent

        Qualifying rent depends on the program: a lease, market rent, or other eligible income. Be realistic.

      3. Ignoring HOA dues

        HOA dues are part of PITIA. In the example, adding a $300 monthly HOA drops DSCR from 1.27 to 1.15.

      Which DSCR Option Fits Your Deal?

      Explore DSCR loan options

      One calculator, different strategies. Pick the option that matches how you’re investing.

      Ready to move?

      Get a term sheet within 24 hours

      Ran your numbers? Submit your deal and get written terms from LGV Capital within 24 hours, with no back-and-forth.

      Request a Term Sheet

      No application fee. No obligation to proceed.

      DSCR Calculator FAQs

      Questions about your number

      Common questions investors ask after running the calculator.

      A DSCR of 1.00 is break-even: rent exactly covers the monthly payment. A DSCR of 1.25 or higher is strong coverage and generally supports better pricing and leverage. LGV Capital DSCR loans qualify from a 0.75 DSCR.

      DSCR is monthly rent divided by monthly PITIA: principal, interest, taxes, insurance, and HOA. For example, $3,600 in rent against a $2,826 monthly payment is a DSCR of 1.27. Above 1.00, rent covers the full payment.

      Possibly. LGV Capital DSCR loans qualify from a 0.75 DSCR. Between 0.75 and 0.99, lower leverage, stronger credit, added reserves, or an interest-only payment may apply. Below 0.75, the deal may need a smaller loan, an interest-only structure, higher qualifying rent, or another change to the financing structure.

      Yes. Lenders calculate DSCR on the full PITIA, not just principal and interest. In the calculator’s example, principal and interest alone show a 1.55 DSCR, while the full payment gives 1.27. The calculator includes taxes, insurance, and HOA by default.

      Use a realistic rate estimate for the scenario you’re evaluating. Your actual rate depends on credit, leverage, DSCR, property type, loan structure, and prepayment terms. A term sheet from LGV Capital provides your proposed terms within 24 hours of submitting your deal.

      Qualifying rent depends on the program: an executed lease, appraiser-supported market rent, or, for short-term rentals, eligible projections or documented operating history. Use a realistic figure for your market.

      Yes. Select Short-term rental in the calculator and enter the property’s average monthly income. Short-term rentals qualify for up to 75% LTV with LGV Capital, and the calculator applies that limit automatically.

      No. DSCR compares gross rent to the monthly payment (PITIA). Vacancy, maintenance, and management aren’t part of the formula, so the calculator’s cash flow figure is before those costs. Model them separately to understand your true return.

      Lower the payment or raise the rent. A smaller loan, an interest-only payment, or a lower rate all reduce the payment. In the calculator’s example, interest-only raises DSCR from 1.27 to 1.41, and every $10,000 less in loan amount lowers the payment by about $66 a month at 6.99%.

      No. The calculator is an estimate only, with no application and no credit check. Results aren’t a loan offer, rate quote, or commitment to lend.

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