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DSCR Calculator for Airbnb Investments

Calculate the debt service coverage ratio of an Airbnb or short-term rental and compare it with common DSCR lender minimums. It is free and needs no signup.

Property Financials

$

Total rental income before any expenses

%

Common underwriting placeholder: 30-45% of gross income

$

Principal and interest (P&I) only

Your DSCR

Strong
1.30

This meets common DSCR lender minimums, but each lender decides.

Calculation BreakdownNOI $39,000 / debt $30,000 per year
Gross Annual Income$60,000
Operating Expenses-$21,000
Net Operating Income (NOI)$39,000
Annual Debt Service$30,000
DSCR = NOI / Debt Service1.30

Looking for DSCR-style financing?

If the property income can support the debt, Kiavi may be worth comparing as an investor-focused lending option.

Borrower eligibility and loan terms are set by Kiavi.

Check Kiavi options (Affiliate partner link)

How the DSCR calculator works

DSCR tells lenders whether the rental income covers the loan. The calculator divides net operating income by annual debt service. Net operating income is gross rental income minus operating expenses, not including the loan. Annual debt service is the monthly principal and interest payment times 12.

DSCR = (gross rental income - operating expenses) / (monthly loan payment x 12)

What lenders look for

A DSCR of 1.0 means income exactly covers the loan payments. Many DSCR lenders want about 1.1 to 1.25 or higher, but minimums vary by lender, LTV, credit profile, reserves, and property type. When your DSCR is below 1.25, the calculator shows the gross annual income needed to reach it.

For full deal math, use the Deal Analyzer.

DSCR questions

What is DSCR?
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.
What is a good DSCR for Airbnb properties?
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.
What DSCR do lenders require for short-term rental loans?
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.
How is DSCR calculated for rental properties?
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).
Can I use Airbnb income for a DSCR loan?
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.

For informational purposes only. Not financial advice. See full disclaimer

DSCR
1.30
Status
Strong