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DSCR calculator: does the rent cover the payment?
Compare monthly rent with an estimated loan payment, taxes, insurance and dues. Explore your debt service coverage ratio and a planning target for a long-term rental you will not live in.
PUT THE NUMBERS TO WORK
Your DSCR, explored.
Estimate coverage for a long-term rental, then see what rent or loan amount would reach your planning target.
Fixed payment · Long-term rental
Figures stay in this browser tab. No contact details needed.
Rental coverage
Live estimate1.00× means rent equals the estimated payment.
Complete your loan details to compare them with your planning target.
View the payment breakdown
- Principal & interest
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- Property taxes
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- Property insurance
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- Association dues
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- Flood insurance
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Vacancy, maintenance, management, repairs and other operating costs are not deducted from the rent-minus-payment figure.
Complete the inputs to see an estimate.
Ratio shown to two decimals. Coverage uses the unrounded calculation.
EXPLORE A DIFFERENT RATIO
What would reach your target?
See the rent or loan amount needed for your target. Each estimate changes one input and keeps the others the same.
Rent at your target
—Enter a complete scenario and target.
Keep the same loan and costs. Any higher rent still needs acceptable evidence.
Loan amount at your target
—Enter a complete scenario and target.
Keep the same rent, rate, repayment period and costs. This does not check property value, borrowing limits or eligibility.
A stronger ratio can affect pricing. The selected program determines whether it does.
How coverage affects pricingHow this estimate works
This estimate divides your monthly rent by an estimated monthly property payment. The payment includes principal (the amount borrowed), interest, property taxes, property insurance, association dues and separate flood insurance. Yearly tax and insurance figures are divided by 12. Include any other required property coverage in insurance, without counting flood coverage twice.
The estimate uses your interest rate assumption and repayment period. At a 0% rate, the amount borrowed is divided by the number of monthly payments. It does not model interest-only loans, different rates used for qualification, points, fees or loans with a large balance due at the end (a balloon payment).
The rent target is the estimated payment multiplied by your target ratio. For the loan target, we divide rent by your target and subtract taxes, insurance and dues. The remaining payment supports the loan amount shown at the same rate and repayment period. Rent rounds up to cents; the loan amount rounds down to cents. Neither result is an approval or a maximum eligible loan.
A lender may use different rent records, payment costs or a different rate in its qualification calculation. A higher DSCR does not change the interest rate you entered here. Your entries stay in this tab, are not saved and are not sent into a rate quote.
Educational estimate only. Not a rate quote, offer, approval or underwriting determination.
Enter your rental scenario
Start with monthly rent and the proposed loan amount. For a refinance, enter the full new loan, including any cash out. Choose an interest rate assumption and repayment period, then add annual property taxes and insurance, monthly association dues and separate flood insurance.
The sample is editable and does not represent an available loan. Include flood coverage only once. All entries stay in this browser tab; they are not saved or sent to a pricing request.
How to calculate DSCR
DSCR = monthly rental income ÷ monthly property payment. This calculator includes principal, interest, taxes, property insurance, association dues and separate flood insurance in that payment.
For example, $3,000 in monthly rent divided by a $2,400 payment is 1.25 DSCR: $1.25 of rent for each $1 of payment. This is a math example, not a qualifying minimum or pricing tier.
A lender may count rent differently or use different payment components. The model assumes fixed payments that repay the loan in full; it does not calculate interest-only, adjustable-rate or balloon loans.
Understand the gauge and planning targets
A ratio of 1.00 means rent equals the modeled payment. Below 1.00, rent falls short; above 1.00, rent exceeds it. The gauge describes this estimate, not loan approval or a lender’s pricing grade.
Set a planning target to see the rent or loan amount that would reach it while keeping the other assumptions fixed. The loan target does not check property value, borrowing limits or eligibility. Rent minus payment is not net profit: vacancy, repairs, maintenance, management and other operating costs still matter.
Can a higher DSCR improve your rate?
It can. Some programs offer better pricing at stronger DSCR ranges. The effect depends on the program and the rest of your loan details; every small increase does not automatically reduce the rate.
This calculator keeps the interest rate you entered. Read the DSCR guide’s explanation of rates and costs, or explore DSCR rates and quote options for your next step.
Every figure on this page is an educational estimate from the assumptions you enter. It is not a loan quote, offer, approval, rate lock, or commitment to lend, and it does not include every cost a real loan carries. Rates shown as examples or as market averages are not rates available from Lendwise Mortgage. Written loan disclosures control the terms of any actual loan. Lendwise Mortgage, NMLS #2702455.