Does Your Investment Property Cover Its Debt?
Analyze your Debt Service Coverage Ratio for purchase or cash-out refinance scenarios. Know instantly whether your rental income supports the loan — before you apply.
Analyze My DealWhat is DSCR and Why Does It Matter?
DSCR lenders don't look at your personal income — they look at whether the property pays for itself.
The Formula
DSCR = Gross Monthly Rent ÷ (P&I + Taxes + Insurance + HOA). A score above 1.0 means the property generates more income than it costs.
1.25+ = Strong qualifier
1.0–1.24 = Borderline
<1.0 = Does not cover debt
Who Uses DSCR Loans?
- •Self-employed investors who can't document W-2 income
- •Portfolio landlords scaling without income ratio limits
- •House hackers & STR investors using rental income to qualify
Interest-Only Option
Many DSCR lenders offer interest-only periods. This lowers your monthly obligation, improving your DSCR score.
Our tool lets you toggle interest-only vs. 30-year amortization to compare both scenarios instantly.
Understanding Your DSCR Score
Strong — Most lenders will approve
The property generates 25%+ more income than its debt obligations.
Borderline — Some lenders may approve with conditions
The property just covers its costs.
Refinement needed — Rental income doesn't cover debt
Adjust rent assumptions, down payment, or loan terms.
Educational Tool — Not Financial Advice
This tool provides educational estimates for informational purposes only. Results do not constitute a loan approval, commitment, or financial advice. Always consult with a licensed mortgage professional before making financing decisions.