DSCR Calculator

Debt Service Coverage Ratio measures whether a property's income covers its debt payments. DSCR = Net Operating Income / Annual Debt Service. A DSCR of 1.0 means income exactly covers debt payments; above 1.0 means positive cash flow.

Many DSCR lenders look for roughly 1.1-1.25 or higher, but minimums vary by lender, LTV, credit profile, reserves, and property type. A higher DSCR generally improves your approval odds, but live lender guidelines should control.

Typical minimums range from 1.0 to 1.25 depending on the lender. Some STR-focused lenders accept 1.0 with compensating factors like strong credit, larger down payment, or significant cash reserves.

DSCR = (Gross Rental Income - Operating Expenses) / (Monthly Loan Payment x 12). Net Operating Income is your gross income minus operating expenses (not including debt service).

Yes, DSCR loans are popular for STR investors because they qualify based on property income, not personal W-2 income. Lenders typically use 12-month income projections or actual rental history from platforms like Airbnb and VRBO.