Tool · Direct lender
DSCR calculator. Does the rent cover the debt?
DSCR is net operating income divided by annual principal and interest. NOI is yearly rent minus taxes, insurance, and HOA. At 1.00x the rent covers the debt. Below 1.00x it does not. This is an illustration, not a commitment to lend.
- Formula
- NOI ÷ P&I
- Program floor
- 1.00x
- To see terms
- 5 minutes
- Credit to see terms
- Soft pull
The calculator
How to calculate DSCR
DSCR is net operating income divided by annual principal and interest. NOI is yearly rent minus taxes, insurance, and HOA. At 1.00x the rent covers the debt. Below 1.00x it does not. This is an illustration, not a commitment to lend.
DSCR
1.25x
Covers the debt. 1.00x floor.
1.25x
Covers the debt. 1.00x floor.
$54,000 yearly rent minus $7,800 expenses is $46,200 NOI. Annual debt is $36,908, so NOI covers it 1.25 times.
Monthly P&I $3,076
Worked example
What 1.25x looks like on paper
$4,500 monthly rent is $54,000 a year. Subtract $6,000 tax and $1,800 insurance. NOI is $46,200. On a $400,000 loan at 8.5% over 30 years, annual P&I is about $36,908. NOI covers that 1.25 times. Floor is 1.00x.
- Monthly rent
- $4,500
- Yearly rent
- $54,000
- Taxes + insurance
- $7,800
- NOI
- $46,200
- Loan
- $400,000 at 8.5% / 30 years
- Annual P&I
- About $36,908
- DSCR
- 1.25x
The method
How we calculate DSCR
We use the property's net operating income and annual principal and interest—not gross rent and PITIA—to measure coverage.
| Common DSCR calc | CR Equity AI | |
|---|---|---|
| Coverage ratio | Gross rent ÷ PITIA | NOI ÷ annual P&I |
| Taxes, insurance, HOA | Inside the payment | Taken out of income first |
| Program floor | Varies by lender | 1.00x |
Questions
DSCR calculator questions
Direct answers. The ratio is on this page. The loan is underwriting.
DSCR = net operating income ÷ annual principal and interest. NOI is (monthly rent × 12) minus yearly taxes, insurance, and HOA.
A result of 1.00x means the rent covers the debt. This calculator illustrates that ratio. It is not a loan offer.
The program floor is 1.00x. Deals with more coverage price better.
Submit the property for real terms. Real terms in 5 minutes.
Residential DSCR lenders often use gross rent divided by PITIA — principal, interest, taxes, insurance, and association dues. We underwrite NOI divided by P&I. Expenses come out of income, not the payment.
No. The calculator illustrates a ratio. Terms come from underwriting.
Soft credit pull only — no hit to your score to get terms. Direct lender. We lend our own capital.
The ratio is the same on a purchase or a refinance.
Get purchase terms on the investment-property purchase page. Cash-out and rate-and-term on a rental you already own sit on DSCR refinance.
Next step
See what you actually qualify for
Get real loan terms in 5 minutes with a soft credit pull only—no impact to your credit score. Direct lender. We lend our own capital.
See my terms