Finance category
Mortgage, loan, investing, tax, and money calculators.
DSCR Loan Calculator
Reverse the DSCR formula to size the maximum loan a rental property can support. DSCR loans qualify the property, not the borrower's W-2 income — this calculator shows the loan amount your projected income will carry.
Property income
Carrying costs & loan
Max loan amount
$280,637
at the 1.20 DSCR floor
Max P&I payment
$2,108
monthly
Income available for DSCR
$30,360
annual NOI proxy (rent − T/I/HOA)
DSCR at max loan
1.20×
passes lender floor
Reading the number
DSCR loans size the maximum loan to ensure projected rental income covers debt service by the lender's required ratio (commonly 1.20–1.25 for the best pricing). Some lenders use NOI; others use a stricter "rent − taxes − insurance − HOA" formula.
Effective rent at 5% vacancy: $3,040/mo. Annual T/I/HOA: $6,120. If the property won't appraise high enough to support this loan amount, LTV becomes the binding constraint instead.
How to Use
- Enter the gross monthly rent and an expected vacancy assumption.
- Enter monthly taxes, insurance, and HOA — the property carrying costs the DSCR formula subtracts.
- Enter the loan rate and term — most DSCR loans are 30-year amortization.
- Enter the lender's minimum DSCR (commonly 1.20–1.25 for best pricing, 1.00 for stretch programs).
- Read the maximum loan amount and the implied monthly P&I — your binding constraint is the lower of this and the LTV cap.
Frequently Asked Questions
How does a DSCR loan qualify a borrower?
Instead of pulling tax returns and W-2s, DSCR lenders qualify the deal by the property's projected income. Income (rent − taxes − insurance − HOA) ÷ debt service = DSCR. If DSCR meets the floor and the borrower clears credit and reserves, the deal funds.
What's a typical DSCR floor?
1.20–1.25 for the best pricing on a 30-year fixed. 1.00 (break-even) is available with rate adjustments. Some programs allow sub-1.00 ('no-ratio') with significant pricing premium.
Does DSCR use NOI or a different income figure?
DSCR loan underwriting commonly uses 'rent minus PITIA-not-debt' — gross rent minus taxes, insurance, HOA — rather than full operating NOI that includes management and maintenance reserves. Always confirm the exact formula your lender uses.
Can a DSCR loan use short-term-rental income?
Some lenders allow it using the lower of (1) actual trailing 12-month income or (2) market long-term rent. Most use long-term comps for safety. A few programs accept AirDNA-style projections for new acquisitions.
Related Calculators
DSCR Calculator
Compute DSCR for a known loan amount instead of solving for max loan.
Cap Rate Calculator
Run cap rate alongside DSCR — they answer different questions.
Cash Flow per Door Calculator
Translate the DSCR-qualifying loan into expected monthly cash flow.
Loan-to-Value Calculator
Confirm the LTV cap doesn't bind before DSCR does.
Rental Property Calculator
Run the full deal model with the DSCR-supported loan amount.
Hard Money Loan Calculator
Use hard money during rehab, then refinance into a DSCR loan.
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