DSCR calculator
Debt service coverage ratio is gross monthly rent divided by PITIA — the monthly loan payment plus property taxes, insurance and association dues. A rental bringing in $2,400 a month against a PITIA of $2,000 has a DSCR of 1.20. Enter the numbers below and the ratio updates as you type.
Debt service coverage ratio
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Enter a monthly rent and the costs on the property to see the ratio.
This calculator is an estimate for planning purposes. Certified Intent is a marketing company, not a lender. We do not make credit decisions, set underwriting criteria, or guarantee any outcome. Actual qualification depends on the lender, the program, and a full review of the file.
Nine questions about the property, then a licensed specialist calls you back.
The formula
Written out, so it can be read rather than only used:
DSCR = Gross Monthly Rent ÷ PITIA
PITIA = Principal + Interest + Taxes + Insurance + Association dues
Principal and interest, amortising:
M = P × [ r(1+r)^n ] ÷ [ (1+r)^n − 1 ]
P = loan amount
r = annual interest rate ÷ 12 ÷ 100
n = term in years × 12
Principal and interest, interest-only:
M = P × rA worked example
A single family rental, let on a twelve-month lease at $2,400 a month. The loan is $240,000 over 30 years at 7.5%. Property taxes are $3,600 a year, insurance $1,440 a year, and there are no association dues.
- Principal and interest: $240,000 at 7.5% over 360 payments is about $1,678 a month.
- Taxes: $3,600 ÷ 12 = $300 a month.
- Insurance: $1,440 ÷ 12 = $120 a month.
- Association dues: $0.
- PITIA: 1,678 + 300 + 120 + 0 = $2,098.
- DSCR: 2,400 ÷ 2,098 = 1.14.
On the same property with an interest-only payment, the monthly payment falls to $1,500, PITIA to $1,920, and the ratio rises to 1.25.
How the number is usually read
These are general reference points used across rental property lending. They are not our criteria, and they are not a qualification outcome — thresholds differ by lender and by program.
| DSCR | What it means |
|---|---|
| Below 1.00 | Rent does not cover the payment |
| 1.00 | Breakeven |
| 1.00 – 1.24 | Covers the payment with little margin |
| 1.25 and above | A level many lenders refer to |
Questions
How is DSCR calculated?
DSCR is gross monthly rent divided by PITIA — the monthly principal and interest payment plus property taxes, insurance and any association dues. A property renting for $2,400 a month with a PITIA of $2,000 has a DSCR of 1.20.
What DSCR do lenders look for?
Many rental property lenders describe 1.25 as a reference point, and a number of programs consider ratios at or below 1.00. Thresholds are set by each lender and each program, and they vary. Certified Intent is a marketing company, not a lender, and sets no criteria of its own.
Does DSCR include taxes, insurance and HOA fees?
Yes. The denominator is PITIA, which includes monthly property taxes, hazard or landlord insurance, and association dues. A calculation that uses only principal and interest produces a higher ratio than a lender would.
Does an interest-only payment change DSCR?
Yes, and materially. An interest-only payment is the loan balance multiplied by the monthly interest rate, with no principal, so the monthly payment is lower and the ratio is higher than the same loan amortising over 30 years.
Is DSCR based on gross rent or net income?
It depends on the lender. This calculator uses gross monthly rent, which is the more common method in rental property lending. Some lenders use net operating income after vacancy and maintenance, which produces a lower ratio on the same property.
How is short-term rental income treated?
Differently from a long-term lease, and differently between lenders. Some use a trailing twelve months of actual revenue, some apply a discount, and some will not count short-term income at all. A long-term lease figure is the safer number to model with.
What happens if DSCR is below 1.00?
A ratio below 1.00 means rent does not cover the monthly payment at those numbers. Some lenders work with ratios below 1.00 depending on the file and the program. Others do not.
What this calculator is not
It is arithmetic. It does not check credit, it does not price a loan, and it does not decide anything. Certified Intent is a marketing company, not a lender: we introduce investors to licensed lending partners, and every underwriting decision belongs to the lender after a full review of the file.
If you want to talk to someone about financing on a property, answer nine questions about it and a licensed specialist will call you back. It is for investment property — not a home you’ll live in.