WIN-WIN CAPITAL FUNDINGBridging Capital • Building Success
Free investor tool

DSCR calculator

Will the rent cover the payment? Enter the property's rent and costs to see its debt service coverage ratio, monthly cash flow, break-even rent and the largest loan the rent supports. Long-term and short-term rentals, 1–4 units and condos.

The property

Monthly rent for each unit: the lease, or market rent if vacant. Lenders usually use the lower of the two.

The loan

Monthly costs lenders count

DSCR uses PITIA: principal and interest, taxes, insurance and association dues. Management, repairs and utilities aren't part of the ratio, but they are part of your cash flow.

The formula

DSCR = rent ÷ PITIA
At 1.00 the rent exactly covers principal, interest, taxes, insurance and HOA. At 1.25 the rent is 25% more than the payment.

What lenders look for

Most DSCR rental programs want 1.00 or higher, and the best pricing usually starts around 1.20–1.25. Some programs go below 1.00, or need no ratio at all, with lower leverage and a higher rate.

Raising your ratio

A larger down payment, a lower rate (paying points), an interest-only payment, a 40-year amortization, or appealing a high tax assessment all lower PITIA and raise DSCR.

For illustration only. Figures are estimates from what you enter and are not a loan offer, rate quote or commitment to lend. Each lender calculates DSCR under its own guidelines. Business-purpose investor loans only. Win-Win Capital Funding, LLC.