DSCR = income available for loan payments ÷ the loan payments. Lenders usually want 1.00x to 1.25x or more. Type your numbers: results update as you type, against the lender minimum you choose.
Your numbers, worked out
What if the rate or rent changes?
Green meets your lender minimum, amber covers the payments but falls short, red is below 1.00x. Outlined cell = your numbers now.
Applying for a business or SBA loan? We build lender-ready P&L, cash-flow and 3-year projections from your real records.
Estimates for planning only, not financial advice. Each lender calculates DSCR with its own rules; confirm with your lender. Payments assume a fixed-rate loan with monthly payments.
DSCR questions, answered
What is a good DSCR?
For rental property (DSCR) loans, most lenders want at least 1.00x and price the loan better at 1.20x–1.25x or higher. For business and SBA loans, banks usually ask for 1.25x. Higher is safer: 1.50x means income covers the payments one and a half times.
How is DSCR calculated for a rental property?
Divide the monthly rent by the monthly PITIA payment: principal, interest, property tax, insurance and HOA. Example: $2,900 rent ÷ $2,178 PITIA = 1.33x. Many lenders use the lower of the lease rent or the appraiser’s market rent.
How is DSCR calculated for a business loan?
Divide the cash available for debt (revenue minus operating expenses, plus approved add-backs such as depreciation or one-time costs) by all yearly loan payments, existing and new. Example: $120,000 ÷ $74,819 = 1.60x.
Can I get a loan with a DSCR below 1.00?
Some rental lenders offer no-ratio or sub-1.00 programs, but expect a larger down payment, a higher rate and more cash reserves. Raising rent, putting more money down or choosing a longer term all lift DSCR.
How do I increase my DSCR?
Lower the payment (larger down payment, lower rate, longer term, smaller loan) or raise the income (higher rent, cut operating costs, document legitimate add-backs). The what-if table above shows how much each rate or rent change moves your number.