DSCR Calculator

By the Bentley Equity Loans Team
Investor lending specialists · DSCR, bridge, fix & flip & multi-family

If you have ever been turned down for a rental property loan because your tax returns did not show enough income, the debt service coverage ratio is the number that changes the conversation. Instead of asking what you personally earn, a DSCR lender asks a simpler question: does the property pay for itself? This calculator gives you that answer in a few seconds, the same way an underwriter would look at it.

What the DSCR actually measures

DSCR stands for debt service coverage ratio. It compares the rent a property brings in against the full monthly cost of the loan that sits on it. When the rent comfortably covers the payment, the ratio climbs above 1.0 and the deal looks healthy to a lender. When the payment eats up most or all of the rent, the ratio drops toward (or below) 1.0 and the file needs a closer look.

The formula we use above is straightforward:

That bracket on the right is what lenders call PITIA. It is the true, all-in monthly cost of carrying the property, not just the mortgage payment. Leaving out taxes and insurance is the most common reason an investor's own math comes out higher than the lender's, so the calculator includes every piece.

How to read your result

• 1.25 and above is the sweet spot. The property is clearly profitable on paper and you will usually see the best available pricing.
• 1.00 to 1.24 still works for most investor loans. The rent covers the debt; the deal is just a little tighter, and the rate may tick up slightly.
• Below 1.00 means the rent does not fully cover the payment yet. This is not an automatic no — reserves, a larger down payment, or an interest-only structure can often bridge the gap. It just needs a conversation.

Why investors qualify this way

Most full-time and part-time investors write off a great deal against their rental income, which is smart for taxes but brutal for a conventional mortgage application. A conventional lender sees the depressed number on your return and says no. A DSCR loan sidesteps that entirely. There are no W-2s, no pay stubs, and no personal debt-to-income calculation. The property's cash flow does the qualifying, which is why DSCR loans have become the default tool for building and scaling a rental portfolio.

A quick worked example

Say you are looking at a single-family rental that brings in $2,400 a month. The loan payment is $1,450, taxes run $280, insurance is $120, and there is no HOA. Add the costs together and you get $1,850 of monthly debt. Divide $2,400 by $1,850 and the DSCR lands at about 1.30 — a strong, clean ratio that most lenders would be happy to fund. Change any one of those numbers in the calculator above and you will see instantly how sensitive the ratio is to taxes, insurance, and the rate environment.

Where to go from here

The calculator gives you a reliable estimate, but your real terms depend on the property type, your credit, the loan-to-value you are after, and a handful of other factors. The fastest way to turn this number into an actual quote is to send us the scenario. We will look at the deal the way an underwriter does and come back with real terms, usually within 24 hours.