DSCR calculator: will the rent carry the loan?

A DSCR rental loan is qualified on the property, not your paycheck. This calculator compares one month of rent with everything the loan costs that month (the loan payment plus property tax, insurance and any HOA dues) and works out how large a loan the rent can carry. It opens on an illustrative single-family rental.

What it answersDoes this rental's rent cover its full monthly payment, and how much can it borrow?

Debt service coverage ratioRent covers the payment

1.15

Monthly rent divided by the full monthly payment (loan payment, taxes, insurance and HOA). 1.00 means the rent pays it exactly. Between 1.00 and 1.24 the rent pays the full payment with little to spare.

Monthly cushion

$239

Loan amount

$180,000

Max loan at 1.00

$214,998

Max loan at 1.25

$160,760

Monthly payment (PITIA)

Principal and interest	$1,228
Property taxes	$258
Insurance	$125
HOA	$0
Total monthly payment	$1,611

Get real DSCR terms on this rental

What to enter

Use numbers you can back up: a signed lease or a realistic market rent, and actual tax and insurance quotes.

Monthly rent: The lease rent, or the market rent an appraiser would support if the unit is empty. For a 2–4 unit building, add every unit together.
Purchase price or value: The contract price if you're buying, or the expected appraised value if you're refinancing.
Down payment: The share of the price you pay in cash. 25% down is a 75% loan-to-value (LTV).
Interest rate: A test rate. Your written terms set the real one, so try a point higher too and see how the ratio moves.
Amortization: 30 years is standard. A 40-year schedule lowers the monthly principal and interest where it's offered.
Payment type: Principal and interest, or interest only. Ask which payment your loan is qualified on.
Taxes, insurance, HOA: The annual property tax bill as a rental, a landlord insurance quote, and monthly association dues if any.

The math

How each number is worked out.

Every result, one line at a time, so you can check it by hand.

DSCR = rent for the month ÷ full monthly payment (P&I + property tax + insurance + HOA dues)

DSCR: Rent divided by the full monthly payment. 1.00 means the rent covers it exactly; 1.15 means 15% to spare; 0.90 means you'd add 10% from your own pocket.
Loan amount: Price or value × (1 − down payment %).
Principal and interest: The standard amortization formula. Take the monthly rate (annual rate divided by twelve) and the payment count (360 for 30 years); the payment is the loan times the monthly rate, divided by one minus (1 + monthly rate) raised to minus the payment count. Interest only is the loan times the monthly rate.
Monthly cushion: Rent minus the full payment. Vacancy, repairs and management still come out of this.
Max loan at 1.00 and 1.25: The ratio solved backwards: rent ÷ target ratio, minus taxes, insurance and HOA, gives the most the loan payment can be. That payment is converted into a loan amount at your rate and term.
The badge: Under 1.00: rent falls short. 1.00 to 1.24: rent covers the payment. 1.25 and up: rent covers it with room. These describe the arithmetic, not a lending decision.

Worked example

A single-family rental at a 1.15 ratio.

Illustrative round numbers, not a quote. The calculator opens on them.

Worked example

Single-family rental, 75% LTV

Monthly rent: $1,850
Loan: 75% of $240,000: $180,000
Principal and interest, 7.25%, 30 years: $1,228
Property taxes ($3,100 a year): $258
Insurance ($1,500 a year): $125
Full monthly payment: $1,611

DSCR: $1,850 ÷ $1,6111.15

Illustrative numbers only, not a quote or a United Lending rate.

The rent covers the full payment with about $239 a month to spare. Solved the other way, the same rent supports a loan of about $215,000 at 1.00 or $160,800 at 1.25.

Three ways the ratio moves

A higher rate: at 8.25% instead of 7.25%, principal and interest rise to about $1,352 and the ratio drops to 1.07.
A longer schedule: amortizing over 40 years instead of 30 lowers principal and interest to about $1,151 and lifts the ratio to 1.21.
More cash down: at 30% down the loan is $168,000, principal and interest are about $1,146, and the ratio is 1.21.

Tips

Ways to improve a thin ratio

Check the rent. If the lease is below market, a market-rent figure from the appraisal may count instead. Ask your loan officer what will be used.
Shop the insurance. A landlord policy quote that's a few hundred dollars lower a year moves the ratio more than you'd expect.
Put more down. A smaller loan means a smaller payment; the calculator shows exactly how much down gets you to your target.
Ask about payment options. Interest-only periods or a longer amortization lower the payment, where they're offered.

Mistakes to avoid

Common mistakes

Using the seller's tax bill. Taxes on an owner-occupied home with exemptions can be lower than the bill on a rental.
Leaving out HOA dues on a condo or townhouse.
Counting rent you can't document. A lender counts the lease or appraised market rent, not a hoped-for number.

Questions

Calculator questions

What DSCR do I need for a loan?

It depends on the program, the leverage and your credit. United Lending doesn't publish a single minimum: run your numbers here, then your loan officer will tell you where your ratio needs to be for the loan you want.

What qualifies a DSCR loan?

The property's rent against its payment, along with your credit, the property's value and the cash you bring. United Lending's DSCR loans start at a 620 credit score and a 0.75 ratio; a lower score or ratio means lower leverage.

Can I use the rent from a lease I haven't signed yet?

On a purchase with no lease in place, lenders typically use the market rent from the appraisal. On a refinance, the existing lease and the appraisal's market rent are both looked at.

Does this calculator work for buildings with more than one unit?

Yes. Add up the rent from every unit and use the building's total taxes and insurance. Your loan officer will confirm which property types qualify on the call.

For planning only. A calculator result is not a loan offer, a rate quote or an approval. United Lending sizes a loan from its own appraisal, the property's rent or budget, your credit and experience, and underwriting.