- Calculator:
- DSCR gauge
- Rate type:
- 30-year fixed
- Interest-only period:
- None (fully amortizing)
- Down payment:
- 25%
- Interest rate:
- 7.000%
DSCR Calculator:
see if rent
covers the loan.
Enter price, rent, rate, taxes and insurance. Get your DSCR and full PITIA breakdown instantly. No black box.
- 7Greenstreet programs
- 47+DCstate rule sets encoded
- <2sto a priced deal
Some of the data behind these figures is out of date. The figures are illustrative until it is refreshed.
- DSCR rate anchor & pricing grid: last verified June 2026, past its 30-day review cycle.
- ZIP-level homeowners premiums (calculator ZIP seed): last verified January 2022, past its 365-day review cycle.
Go deeper
The full monthly payment — principal, interest, taxes, insurance (and any flood policy), and any HOA dues. DSCR = qualifying rent ÷ this total.
- Loan amount$318,750
- P&I monthly$2,121
- Taxes /mo$602
- Insurance /mo$167
- Total PITIA$2,889
Binding constraint: rate headroom before DSCR breaks 1.00x — the deal holds until the rate reaches ~7.51%. That's the number that governs this file, not the rate on the sheet.
Real-cost coverage — total cost of ownership
break-even rent $4,013/moQualifies but dangerous
This clears the lender at 1.04x, but after typical vacancy, management, and maintenance it nets 0.75x — below 1.00. The lender approves; the deal still loses money each month. Pressure-test it in the Stress Matrix →
Track 2 Rescue — 4 fixes for negative cash flow · 0.75x
Track 2 DSCR is 0.75x — after 7% vacancy, 8% management, and 13% maintenance and CapEx reserves, the property loses money each month. These are your investor survival levers.
Warning: Track 2 shows $729/month negative carry. This deal does NOT cash flow after expenses. Proceed only if appreciation/tax strategy justifies the $729/month ($8,753/year) outlay.
If things go wrong — what it costs you
Convert any standard DSCR to TCO
The same conversion on any standard DSCR: TCO DSCR = Standard DSCR ÷ (1 + reserve load). It opens on this deal's DSCR.
LTR is a long-term rental, MTR a mid-term rental, STR a short-term rental.
1.04x standard becomes 0.75x TCO at a 38.89% reserve load. Below 1.00 break-even once reserves are funded.
Needs a 1.39x standard DSCR to reach 1.00 TCO at this reserve load.
| Standard DSCR | TCO DSCR | Against 1.00 |
|---|---|---|
| 0.75x | 0.54x | below 1.00 |
| 1.00x | 0.72x | below 1.00 |
| 1.10x | 0.79x | below 1.00 |
| 1.15x | 0.83x | below 1.00 |
| 1.20x | 0.86x | below 1.00 |
| 1.25x | 0.90x | below 1.00 |
| 1.30x | 0.94x | below 1.00 |
Why 38.89%. A 38.89% reserve load sets aside 38.89 cents of CapEx, maintenance, and vacancy reserve for every dollar of PITIA. The 38.89% default is the load at which a 1.25 standard DSCR converts to 0.90 TCO. Raise it for older stock or heavier turnover; lower it for new construction under warranty.
How the conversion is calculated, and what qualifies
Standard DSCR is gross rent divided by PITIA — the number the lender scores. The TCO equivalent divides it by one plus the reserve load: TCO DSCR = standard DSCR ÷ (1 + reserve load).
The reserve load is the CapEx, maintenance and vacancy reserve set aside for every dollar of PITIA. Each strategy's starting load comes from the same operating-cost rates the engine's Track 2 reads: the TCO factor is one minus that rate, and the reserve load is one divided by the factor, minus one. The starting loads are:
- Single-family long-term rental: 38.89%, where the page opens
- 2–4 units: 36.99%
- 5+ units: 33.33%
- Short-term rental: 75.44%
Raise the load for older stock or heavier turnover; lower it for new construction under warranty.
Nothing on this page changes what qualifies. Lenders score the standard DSCR, and the published programs' rated floors — 0.75x to 1.00x — apply to that number.
The TCO figure answers a different question: whether the property funds its own reserves. A deal can clear the lender's number and still carry negative monthly cash flow once real costs are paid, which is why the site shows the expense-aware view beside the qualifying one instead of blending the two.
Keep readingGlossary: TCO DSCRGlossary: Track 2DSCR loan requirements: coverageDSCR vs cash flow
Each option is calculated from this scenario. Applying one updates the calculator inputs and reruns the model.
P&I $2,471/mo · 0.93x after recast
Uses the current balance and rate. IO assumes 10 years without principal reduction, then a 20-year recast at the same rate; actual product terms, pricing, and underwriting can differ.
These are scenario changes, not lender terms or approval outcomes. Confirm rent, pricing, and financing assumptions before acting.
Full rescue analysis — 5 ranked options
Track 1 DSCR is 1.04 — below target 1.25. Adjustments needed to reach target qualification.
Approvable with standard documentation. No major concerns.
- DSCR1.04× Track 1 · 60/100
- FICO720 · 80/100
- LTV75% · 80/100
- ReservesNo reserve data · 50/100
- Property TypeSFR · 100/100
| Structure Name | Rate | Monthly PITIA | Track 1 DSCR | Track 2 DSCR | 5-Yr Total Cost |
|---|---|---|---|---|---|
| Lower LTV (65%) | 6.900% | $2,588 | 1.16x | 0.83x | $92,189 |
| 5/6 ARM | 6.400% | $2,763 | 1.09x | 0.78x | $100,414 |
| Lower LTV (70%) | 7.150% | $2,778 | 1.08x | 0.78x | $103,345 |
| 7/6 ARM | 6.650% | $2,815 | 1.07x | 0.77x | $104,067 |
| 10/6 ARM | 6.900% | $2,868 | 1.05x | 0.75x | $107,721 |
| 30yr Fixedyour tier | 7.400% | $2,976 | 1.01x | 0.73x | $115,037 |
| 5/6 ARM + 10yr IO | 6.775% | $2,568 | 1.17x | 0.84x | $117,539 |
| 40yr Extendedyour tier | 7.650% | $2,902 | 1.03x | 0.74x | $120,343 |
| Lower LTV (70%) + IO | 7.525% | $2,634 | 1.14x | 0.82x | $120,859 |
| 30yr Fixed + 5yr IOyour tier | 7.900% | $2,867 | 1.05x | 0.75x | $135,469 |
| 30yr Fixed + 10yr IOyour tier | 7.900% | $2,867 | 1.05x | 0.75x | $135,469 |
| 40yr + 10yr IOyour tier | 8.150% | $2,934 | 1.02x | 0.74x | $139,453 |
Returns use Track-2 opex (vacancy/mgmt/maint). Cash in ≈ $106,250. Break-even rent ≈ 111% of current rent. Sale price assumes the purchase price grows 4.3% a year, the long-run U.S. average of the FHFA House Price Index (purchase-only, January 1991 to June 2026). You can switch to a cap-rate exit. Open full returns desk →
What moves the needle
How much each change shifts your DSCR — green improves it, red hurts it.
Most DSCR shops quote a rate. A cost-segregation study reclassifies ~25% of the building into 5/7/15-year property that takes 100% bonus depreciation under OBBBA (the One Big Beautiful Bill Act, 2025's federal tax law) — roughly $85,000 of first-year deductions on this deal. After-tax return is where serious investors actually decide.
See your after-tax IRR →A deduction is not a dollar of tax saved — the actual tax saved is this figure times your marginal bracket, and whether you can use it this year at all depends on your §469 passive-activity status: against wages and other ordinary income it generally takes real estate professional status plus material participation in the rental, or material participation in a short-term rental; otherwise the passive-loss limits apply, including the active-participation allowance. Modeled from your numbers — actual depreciation depends on your basis, income, and a cost-seg study; recapture (§1250, up to 25%) and NIIT apply at sale. Confirm with a CPA.
Debt Service Coverage Ratio (DSCR) = Monthly Rent ÷ Monthly Loan Payment (PITIA). A ratio of 1.25x means rent is 25% higher than your payment. Qualification is based entirely on property rental income — no tax returns or W-2s needed.
The full requirements: coverage, credit, down payment and reserves →
DSCR loan calculator: how the ratio works
DSCR = Gross Monthly Rent ÷ Total Monthly PITIA (1.00 = rent exactly covers the payment; higher is stronger).
DSCR = Gross Monthly Rent ÷ Total Monthly PITIA (1.00 = rent exactly covers the payment; higher is stronger). Worked example: rent = $2,500/month. PITIA = $1,420 P&I + $330 taxes + $110 insurance + $60 HOA = $1,920. DSCR = $2,500 ÷ $1,920 = 1.30x — the property generates 30% more income than it costs to carry. A result below 1.0 means the rent doesn't cover the payment. Lenders use the lower of the signed lease or the Form 1007 appraiser market-rent estimate — not the Zillow figure or the listing.
PITIA is the full monthly payment — Principal, Interest, Taxes, Insurance, and HOA dues. P = Principal. I = Interest at the note rate. T = Property taxes (actual annual bill ÷ 12 — use the post-sale assessed value, not the seller's homestead-exempt bill). I = Insurance (hazard + flood if required — get a real quote; coastal properties can run $300–600/month). A = HOA dues (full monthly amount). Taxes and insurance are the two PITIA components that most often surprise borrowers at underwriting.
No. A significant share of DSCR loans close without a signed lease. Lenders use Form 1007 market rent from the appraisal — the appraiser's estimate of what the property would rent for — as the qualifying figure. If you do have a lease, the lender uses the lower of the lease rent and the 1007 rent. Vacant properties and new acquisitions are fine.
No. A DSCR (Debt Service Coverage Ratio — whether the property's rent can cover the loan payment) loan qualifies on what the property earns, not what you earn. The lender divides the property's gross monthly rent by its total monthly PITIA (the full monthly payment — principal, interest, taxes, insurance, and any HOA dues). A DSCR at or above 1.0 means rent covers the payment. No W-2s, no pay stubs, no employment history required.
Sometimes. Most lenders require a DSCR (whether the property's rent can cover the loan payment — 1.00 = rent exactly covers it; higher is stronger) at or above 1.00. Some accept as low as 0.75 with compensating factors such as a strong credit score and more cash reserves. Sub-1.0 options exist, but lender choices narrow sharply and reserves jump to 9–12 months. If the DSCR is below 0.75, most institutional programs don't apply.
Four levers: (1) Buy down the rate: each 0.25% rate reduction saves ~$15–17/month per $100K of loan. On a $400K loan, buying down 0.50% saves ~$130/month in P&I. Points cost roughly 1% of loan per 0.25% of rate reduction. (2) Switch to interest-only (IO): IO eliminates the principal component, saving roughly $250–350/month on a $400K loan at current rates. Requires 720+ FICO, ≤75% LTV on most programs. (3) Raise the qualifying rent: provide the appraiser with comparable rental data before the inspection; sign a market-rate lease before closing (if vacant); or use documented 12-month STR history if the property is STR-eligible. (4) Increase the down payment: going from 80% to 75% LTV on a $400K property drops the loan by $20K, cutting principal and interest by roughly $130 to $140 per month at the rates quoted above AND unlocks the better LTV rate tier, saving an additional 0.25–0.50%. Levers 2 and 4 combined can often take a 0.92x DSCR to 1.10x+ without touching the rent.
Compare deals
Save a deal first to compare it side by side with another.
Underwrite Every Property Class
From single-family rentals to commercial multi-family and vacation Airbnbs, select a property type below to explore guidelines.
Single Family Residential
The core DSCR benchmark. Qualify strictly on appraised market rent or signed lease agreement with zero tax return requirements.
Up to 85% LTV·0.75x Min DSCRNo-ratio option on select programs- ✓ Form 1007 Market Rent
- ✓ Up to $3.5M Loan Amount
- ✓ Individual or LLC Vesting
2-4 Unit Multi-Family
Two to four units under one roof means two to four rent checks against a single mortgage payment — which is why small multi-family files often carry more coverage than one house at the same price. Vacant units count at the appraiser's market rent.
Up to 85% LTV·0.75x Min DSCRNo-ratio option on select programs- ✓ Aggregate Unit Income
- ✓ Stronger Cash-on-Cash
- ✓ 30-Yr Fixed & ARMs
5+ Unit Multi-Family
Institutional commercial underwriting for 5–36 unit residential buildings using gross operating NOI and debt yield metrics.
Up to 80% LTV·1.00x Min DSCR1.10x on some multi-family programs- ✓ Commercial Debt Yield
- ✓ Interest-Only Options
- ✓ Non-Recourse Available
Condos & High-Rises
Flexible guidelines covering high-density urban condo units, single-entity concentration issues, and HOA litigation exceptions.
Up to 85% LTV·0.75x Min DSCRNo-ratio option on select programs- ✓ Non-Warrantable OK
- ✓ Single-Entity Cap Waiver
- ✓ Condotel Terms Available
Short-Term Rentals
Qualify on projected STR gross revenue from AirDNA or Rabbu, or 100% of 12-month platform actual history across vacation markets.
Up to 85% LTV·0.75x Min DSCRNo-ratio option on select programs- ✓ AirDNA 20% Haircut
- ✓ Documented 12-Mo Actuals
- ✓ Seasonality Gap Protection
Commercial & Mixed-Use
Finance mixed-use urban properties featuring street-level retail or boutique office space with apartments above.
Up to 80% LTV·1.00x Min DSCR1.10x on some multi-family programs- ✓ 51%+ Residential Preference
- ✓ Commercial Lease Credit
- ✓ LLC Entity Vesting
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Check my DSCRPrinted November 9, 2026 · http://127.0.0.1:45643/dscr-calculator