Debt Service Coverage Ratio (DSCR) Calculator
Enter a rental's purchase price, rent, and financing terms. See the Debt Service Coverage Ratio (DSCR), annual Net Operating Income (NOI), and monthly mortgage — the three numbers a lender will actually underwrite.
Property & rent
The two numbers DSCR can't be calculated without.
Financing
Defaults reflect a typical Debt Service Coverage Ratio loan: 25% down, 30-year term.
Operating expenses
What the property keeps after running costs — used to calculate Net Operating Income.
Enter a purchase price and a monthly rent to see your DSCR.
Breakdown
This is an estimate based on the numbers you entered. A real DSCR depends on the rent the property actually commands and the rate your lender is quoting today. Always confirm with a full Comparative Market Analysis (CMA) — and a lender quote — before making an offer.
Don't guess the rent
Fundry pulls leased and currently listed rental comparables for any Georgia address and builds the full DSCR underwrite — no spreadsheet required. Free.
Run a real CMA freeWhat the Debt Service Coverage Ratio actually measures
The Debt Service Coverage Ratio (DSCR) is the single number a rental-loan underwriter cares about most. It answers a simple question: after paying the bills, does the property generate enough income to comfortably cover the mortgage?
DSCR = annual Net Operating Income ÷ annual debt service
Net Operating Income (NOI) is the rent the property actually keeps after vacancy, property management, routine maintenance, insurance, and property taxes — but before the mortgage. Annual debt service is twelve months of principal and interest. A DSCR of 1.20 means the property throws off twenty cents of surplus for every dollar of debt service.
What lenders require
Lender thresholds vary, but the convention is consistent enough to plan around:
- DSCR < 1.0 — the rent does not cover the mortgage. Most lenders decline, or require a much larger down payment to bring the loan amount down.
- DSCR 1.0 to 1.25 — qualifying gets tight. Expect higher rates, additional reserves, or a bigger down payment.
- DSCR ≥ 1.25 — the common minimum for a clean approval on a Debt Service Coverage Ratio loan. Stronger programs and the best pricing usually start here.
- DSCR ≥ 1.40 — comfortable cushion. Rates and terms get noticeably better, and the deal can absorb a vacancy or a rate shift without going underwater.
Some lenders qualify at the note rate, others at a higher underwriting rate. If you're close to the line, ask which one applies before relying on a borderline DSCR.
Why investors use a DSCR loan
A Debt Service Coverage Ratio loan qualifies on the property — not on the borrower's W-2 income, tax returns, or debt-to-income ratio. That makes it the workhorse loan for full-time investors, self-employed buyers, and anyone holding rentals inside an LLC. The trade-off is usually a slightly higher rate than a conforming primary-residence loan and a 20–25% down-payment requirement.
For a portfolio investor, the upside is the deal stands on its own merits. You can scale past the ten-property conforming cap, qualify on rental income from day one, and close in an LLC without piercing personal liability.
From a single number to a full Comparative Market Analysis (CMA)
DSCR is only as good as the rent number behind it. The biggest mistake on a rental analysis is over-estimating rent — a 10% miss on rent flips a 1.30 DSCR into a 1.17, and that's the difference between a clean approval and a declined loan. A full Comparative Market Analysis (CMA) pulls recently leased and currently listed comparable rentals to ground the rent in real market data instead of a guess.
Fundry builds that full analysis on any Georgia address for free. Create a free account and the rent comps come to you.
Frequently asked questions
What is the Debt Service Coverage Ratio (DSCR)?+
The Debt Service Coverage Ratio (DSCR) measures how comfortably a rental property's income covers its mortgage. It is annual Net Operating Income (NOI) divided by annual debt service (twelve months of principal and interest payments). A DSCR of 1.0 means the rent exactly covers the loan; above 1.0 means the property earns a surplus after debt service.
How do you calculate DSCR?+
Calculate annual Net Operating Income — gross rent minus vacancy, property management, maintenance, insurance, and property taxes. Then calculate annual debt service — twelve months of mortgage principal and interest. Divide NOI by debt service. For example, an NOI of $18,000 on debt service of $15,000 is a DSCR of 1.20.
What DSCR do lenders require?+
Most lenders treat 1.0 as the absolute floor (the property breaks even on debt) and 1.25 as a common minimum to actually qualify for a Debt Service Coverage Ratio loan. Stronger programs and lower interest rates often start at 1.25 to 1.35. Below 1.0 means the rent does not cover the mortgage and most lenders will decline or require a larger down payment.
What is a DSCR loan?+
A DSCR loan is a rental-property mortgage that qualifies based on the property's income — not the borrower's W-2 wages, tax returns, or debt-to-income ratio. The lender sizes the loan against the Debt Service Coverage Ratio at the underwriting rate, which makes these loans popular with self-employed investors, full-time landlords, and anyone building a portfolio inside an LLC.
How can I improve a low DSCR?+
Three main levers: raise the rent (or buy a property with stronger rents), lower the loan amount with a larger down payment, or reduce operating expenses. A larger down payment is the most reliable lever because it cuts the monthly mortgage directly. Buying down the interest rate also helps but the math is usually weaker than putting the same cash toward principal.
Is this DSCR calculator free?+
Yes. The calculator is completely free and requires no sign-up. If you want Fundry to estimate the rent for a specific Georgia address from comparable leased homes — and build the full rental analysis automatically — you can create a free account.
Where deals get decided
Search any Georgia address. Fundry pulls matched rent comparables, builds the full rental analysis, and shows you the DSCR a lender will actually see. Free.
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