💰 DSCR Calculator

Investment Property Cash Flow Analysis

📊 What is DSCR?

Debt Service Coverage Ratio (DSCR) measures whether your rental income can cover the mortgage payment. DSCR = (Rental Income - Expenses) ÷ Mortgage Payment. A DSCR of 1.0 means the property breaks even, while 1.25+ indicates strong cash flow. Note: DSCR requirements vary by lender - some lenders offer "no ratio" DSCR loans.

🏢 Property & Loan Details

20% down
Your DSCR
1.25
💰 Strong Cash Flow

📋 Monthly Cash Flow Breakdown

Gross Rental Income
$3,500
Total Expenses
$950
Net Operating Income
$2,550
Mortgage Payment (P&I)
$2,238
Monthly Cash Flow
+$312

Expense Details

Property Tax: $600
Insurance: $150
HOA/Condo: $0

💡 Rent Needed for Different DSCR Levels

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Frequently Asked Questions

What is a good DSCR ratio for investment properties?

Most DSCR lenders require a minimum of 1.0 (property income covers mortgage). A DSCR of 1.25+ is considered strong with better rates. Some lenders offer loans with DSCR as low as 0.75 for appreciating markets.

Do DSCR loans require income verification?

No, DSCR loans qualify based on the property's rental income rather than personal income. This makes them ideal for self-employed investors or those with complex tax returns.

How is DSCR calculated?

DSCR = Net Operating Income (NOI) / Annual Debt Service. NOI is annual rental income minus operating expenses. Debt service is your total annual mortgage payment.

What is the minimum down payment for a DSCR loan?

Most DSCR loans require 20-25% down. Some lenders allow 15% with strong DSCR (1.25+) and credit. Higher down payments get better rates.

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