Calculator · for investors
Does the property carry its own debt?
A DSCR loan qualifies the property, not you. No tax returns, no W-2s, no debt-to-income ratio — the rent either covers the payment at the lender’s required ratio, or it doesn’t.
Search “DSCR calculator” and you mostly get corporate finance. Debt service coverage for a company balance sheet is a different calculation from rental-property qualification, and the tools that rank are answering the wrong question. This one answers the rental one.
Starts at the MORTGAGE30US 30-year survey average (6.58%, week ending 2026-07-23), snapped to the nearest 0.125 step. DSCR and other business-purpose investor loans normally price above owner-occupied conventional, so this starting point is low for this product. Enter the rate you were actually quoted.
Debt service coverage ratio
1.18
Qualifies
- PITIA (monthly debt service)
- $2,461
- Net operating income (monthly)
- $2,183
- Cash flow after debt service
- -$278
- Cap rate
- 8.19%
- Cash-on-cash return
- -4.17%
- Loan amount
- $240,000
- Cash in (down payment)
- $80,000
Most DSCR lenders want 1.00–1.25 depending on the program; pricing improves as the ratio rises. Excludes vacancy, management, and maintenance reserves — underwriting may apply them. Estimates only, not a quote or a determination of eligibility.
Reading the ratio
Below 1.00
The rent does not cover the debt service. Some programs still lend here with a larger down payment or an interest-only structure, but pricing gets expensive.
1.00 to 1.24
Qualifies with most lenders. Thin enough that a vacancy or a tax reassessment can flip it, so reserves matter more than the headline number.
1.25 and above
Comfortable. This is where DSCR pricing starts improving materially, and where the deal survives a bad quarter.
About the starting rate. The rate control arrives pre-filled so the tool has something to calculate with. That number is a placeholder — not a quote, not a rate we have offered you, and not an offer of credit. Replace it with the rate you have actually been quoted.
For reference, the 30-year fixed average in the Freddie Mac Primary Mortgage Market Survey, retrieved from FRED (Federal Reserve Bank of St. Louis) (series MORTGAGE30US) was 6.58% for the week ending July 23, 2026, retrieved July 29, 2026. That is a national average across lenders, so no individual borrower was offered it, and it is a note rate rather than an APR — the survey does not publish APRs, and your APR will be higher than any note rate once costs are included. Your own rate depends on your credit profile, loan amount, loan-to-value, occupancy, property type, lock period and program. See the 52-week context.
Sent. Check your inbox in a minute or two.
Here’s your estimated payment — want Jeff to check if it’s actually the right structure?
A calculator can tell you what a payment costs. It cannot tell you whether the term, the down payment, or the loan type is the right one for how long you plan to hold it. That part is a conversation, and it is usually a short one.
Jeff Shin · NMLS #1041652 · Barrett Financial Group, L.L.C. NMLS #181106