DSCR loan calculator
Estimate a rental property's debt-service coverage ratio, monthly PITIA, loan amount, reserves, and cash needed—or possible cash-out proceeds.
What does the DSCR number mean?
DSCR divides qualifying monthly rent by estimated monthly housing expense. A result of 1.20 means the rent is 120% of the modeled PITIA payment.
Many programs prefer a ratio at or above 1.00, but the exact threshold is not universal. Some specialty paths may consider lower ratios with stronger credit, lower leverage, more reserves, or other compensating factors.
See the formula and a worked example →Strengthen the borrower profile before launch.
If credit—not the property—is blocking financing, Propello's sister company Venture Ready helps people build a stronger credit and funding profile before they apply again.
What the estimate includes—and what it doesn't.
How is DSCR calculated?
This calculator divides monthly qualifying rent by estimated monthly PITIA: principal, interest, property taxes, insurance, association dues, and similar housing expenses entered above.
Does a good calculator result mean I qualify?
No. Lenders may calculate rent or expenses differently and also review credit, liquidity, reserves, experience, entity structure, property eligibility, appraisal, documentation, state availability, and other factors.
Can a property qualify below a 1.00 DSCR?
Some specialty programs may consider lower-ratio or no-ratio scenarios, but availability is narrower and may require lower leverage, stronger credit, greater liquidity, or different pricing.
Why can lender DSCR differ from my result?
A lender may use the lower of lease rent or appraiser market rent, apply a short-term-rental calculation, use a qualifying note rate, include additional association or property expenses, or size the loan to a program cap.