DSCR loan calculator
Enter the monthly rent and the housing payment to see the debt service coverage ratio (DSCR), rent divided by PITIA, for your review of the loan file.
Runs in your browser. What you type isn't sent or stored.
Calculate DSCR
Rent
The rent figure the lender tells you to use.
Housing payment
Target DSCR (optional)
Shows the rent that gives this ratio at the PITIA above.
How DSCR is calculated
DSCR = monthly gross rent ÷ monthly PITIA. If you turn on the factor, the rent is first multiplied by (100% − the factor you enter).
When you work out P&I from the loan, the calculator uses the standard amortization formula: P&I = L × r ÷ (1 − (1 + r)^−n), where L is the loan amount, r is the annual rate ÷ 12 and n is the term in months. At a 0% rate, P&I = L ÷ n. See CFPB: How do mortgage lenders calculate monthly payments?
Lenders publish their own definitions. The Windsor Mortgage DSCR Plus Program matrix (effective 02/24/2026) lists the DSCR calculation as "Gross Rent/PITIA (P&I), Gross Rent/ITIA (Interest Only)" (source). The EMM Non-QM DSCR Matrix (dated 6/09/2026) says "DSCR ratio = Gross monthly rental income divided by Qualifying Payment. (Qualifying Payment = PITIA of the subject property. ITIA for interest only loans.)" (source).
Worked example
- Loan $300,000 at 6% for 30 years: P&I $1,798.65.
- Property tax $300, homeowners insurance $100, no flood insurance or HOA dues: PITIA $2,198.65.
- Monthly rent $2,500: DSCR = $2,500 ÷ $2,198.65 = 1.14.
- Monthly cash flow: $2,500 − $2,198.65 = $301.35.
- With a target of 1.25 entered: rent needed = 1.25 × $2,198.65 = $2,748.31.
Round numbers for illustration only, not a rate quote or a limit.
What goes into PITIA
- Principal and interest: typed directly, or worked out from the loan amount, rate and term.
- Property tax, monthly.
- Homeowners insurance, monthly, plus flood insurance where the property has it.
- HOA or condo dues, monthly.
Blank fields count as $0. Ask the lender what PITIA includes for the specific loan.
DSCR vs bank statement loans
A bank statement loan works out the borrower's income from deposits on their statements. A DSCR loan looks at the property's rent against its housing payment instead. The same broker may see both: a bank statement loan on the borrower's home and a DSCR loan on a rental.
For a bank statement file, try the bank statement income calculator, or see the sample worksheet StatementReady builds from the statements.
What this calculator doesn't do
- It doesn't make a lending decision or say whether a ratio is enough for a loan.
- It sets no minimum DSCR, vacancy factor or rent rule. Those vary by lender and program.
- "Rent needed" is only the target you enter × PITIA. It isn't a lender threshold.
- It doesn't work out interest-only payments; enter that payment as P&I if the lender asks for it.
Questions
What is DSCR on a mortgage?
DSCR, the debt service coverage ratio, compares a rental property's monthly rent with its monthly housing payment (PITIA). Some non-QM loan programs for investment properties use it in place of the borrower's personal income.
How is DSCR calculated?
Monthly gross rent divided by monthly PITIA. The Windsor Mortgage DSCR Plus Program matrix (effective 02/24/2026) lists the DSCR calculation as "Gross Rent/PITIA (P&I), Gross Rent/ITIA (Interest Only)". The calculator rounds the ratio to two decimals.
What counts in PITIA?
Principal and interest, property tax, homeowners insurance and association dues, plus flood insurance where the property has it. Ask the lender what it includes for the specific loan.
What if DSCR is below 1?
Then the rent is less than PITIA and the cash-flow line shows a negative figure. Lenders may set their own minimum ratios or have programs for lower ratios. The calculator sets none, so confirm with the lender.
Do DSCR loans use personal income?
Some programs don't. The EMM Non-QM DSCR Matrix (dated 6/09/2026) says "Employment and income are not required and not disclosed." Other programs may differ; confirm with the lender.
Is market rent or lease rent used?
It depends on the lender. The EMM matrix uses "the lower of the actual rent for leased properties per the lease agreement or 100% of the monthly market rent (Form 1007 or Form 1025)". Enter the rent figure the lender tells you to use.
Is anything I type saved?
No. The ratio is calculated in your browser, and what you type isn't sent or stored.
Not legal or tax advice.
Ready for the real statements?
Upload 12 or 24 months of PDFs. StatementReady checks whether each statement's transactions add up to its printed balances.
This tool assists your review of the loan file. The lender makes all underwriting decisions.
StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.