Calculate DSCR Ratio & Property Eligibility
Use our free DSCR (Debt Service Coverage Ratio) calculator to quickly see whether your investment property meets common DSCR loan requirements. Enter a few numbers and get an instant snapshot of how lenders may view your deal.
How To Evaluate DSCR
This calculator estimates how lenders may evaluate your property's cash flow using rental income and PITIA.
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DSCR 0.80x+: Low Ratio
Rent covers roughly 80% of the monthly housing payment. Some lenders may allow lower DSCR with stronger credit, reserves, or lower leverage.
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DSCR 1.00x+: Break Even
Rental income generally covers the property payment. Many DSCR lenders offer standard financing options at this level.
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DSCR 1.25x+: Strong Cash Flow
Higher cash flow usually provides the best lender selection, pricing, and qualifying flexibility.
Important to Know
DSCR is not a strict pass/fail metric. Lenders also review credit, reserves, and LTV. Some programs allow ratios below 1.00x with compensating factors like lower LTV or stronger reserves.
What Is DSCR?
Debt Service Coverage Ratio (DSCR) evaluates if a rental property generates enough income to pay its mortgage and related costs.
- Principal
- Int.
- Taxes
- Ins.
- HOA
DSCR = Monthly Rental Income ÷ Monthly PITIA
General DSCR Guidelines
| 1.20+ | Considered strong. Often qualifies for best rates. |
|---|---|
| 1.00 to 1.19 | Generally acceptable for most DSCR programs. |
| 0.70 to 0.99 | May still qualify with compensating factors, lower LTV, or strong credit. |
Even if your DSCR is lower, options may still exist. Program guidelines vary by lender.
DSCR Calculation Examples
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DSCR 1.25
DSCR = 2,500 / 2,000 = 1.25
Highly favored by lenders due to strong cash flow.
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DSCR 1.00
DSCR = 2,000 / 2,000 = 1.00
Break-even: often still eligible with strong LTV/credit.
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DSCR 0.90
DSCR = 1,800 / 2,000 = 0.90
Cash-flow gaps can still be acceptable based on lender criteria.
The Value of Working With a DSCR Specialist
Unsure how your ratios compare? Talk with a DSCR specialist to determine if your property qualifies.
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Close on Time
Quick 21-day closings with expert DSCR support.
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Better Rates
We compare 20+ DSCR lenders to secure the best rates and terms.
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Deal Structuring
Solutions for lower DSCR, unique properties, and complex deals.
Strategic Financing for Real Estate Investors
DSCR Loan Options by State
Crestmark Lending offers DSCR loan programs for real estate investors across Texas, Oklahoma, Colorado, and 35+ other states nationwide.
