Enter your rental property's income and loan terms. The calculator shows your DSCR, whether a lender will fund the deal, and — using the Lender Solver below — the maximum loan amount a DSCR lender would approve given your property's income. No signup, no download.
Results update as you type — DSCR = Annual NOI ÷ Annual Debt Service
NOI uses effective gross income (gross rent × (1 − vacancy%)). Operating expenses exclude mortgage — taxes, insurance, maintenance, management, and reserves only. For the full underwriting model with sensitivity tables and 5-year projections, see the Deal Analyzer Pro spreadsheet.
Given your NOI and a lender’s DSCR threshold — what’s the largest loan they’ll approve?
The NOI auto-fills from the calculator above. Change the target DSCR or rate if you want to model different lender requirements.
Max loan = the largest principal a lender at that DSCR threshold will write. If your target purchase requires a larger loan, you need either a higher down payment, a higher-rent property, or a lower purchase price. Use this number as your financing ceiling before making an offer.
DSCR measures a single thing: does the property's income cover its debt? A DSCR of 1.25x means the property generates 25% more income than needed to service the loan. The four verdict tiers reflect how lenders actually underwrite:
| DSCR | Verdict | What It Means |
|---|---|---|
| ≥ 1.25× | LENDER-GRADE | Qualifies for most DSCR loan programs at standard terms. |
| 1.10 – 1.24× | BORDERLINE | Some DSCR lenders accept this range; expect a rate premium or lower LTV requirement (65% vs. 75%). |
| 1.00 – 1.09× | CONCERN | Below standard for most DSCR programs. Larger down payment or higher rent needed. |
| < 1.00× | NO-GO | Property loses money after debt service. Standard institutional lenders will not fund. |
The 1.25x standard: Most non-QM DSCR loan programs require 1.20–1.25 at 75% LTV. Fannie Mae multi-family guidelines formally require 1.25x. Some portfolio lenders accept 1.10 for low-LTV deals in strong markets, but 1.25 is the number to underwrite to for maximum financing flexibility.
$200K purchase price · 25% down ($150K loan) · $1,800 rent · 5% vacancy · $350/mo expenses · 7.0% · 30-year
Same $200K property · 20% down ($160K loan) · same rent, expenses, and rate
$280K purchase · 25% down ($210K loan) · $1,800 rent · 5% vacancy · $500/mo expenses · 8.0% · 30-year
This calculator produces a clean DSCR pass/fail using the standard lender formula. It does not model:
11-tab institutional spreadsheet with DSCR sensitivity tables, full Lender Solver with rate & LTV scenarios, 5-year pro forma, IRR, and a lender-grade deal summary page. Built for investors who need to show their work to partners and lenders.
Deal Analyzer Pro — $29 Rental Tracker Pro — $29The standard minimum for DSCR loan programs (non-QM/portfolio lenders) is 1.20–1.25. Fannie Mae investment property guidelines require 1.25 on multi-family. Most DSCR-specific loan programs — which qualify borrowers on property income rather than personal W-2 income — require between 1.00 and 1.25 depending on LTV and lender. At 75% LTV, most DSCR lenders require 1.20 minimum. At 65% LTV, some accept 1.10. Underwrite to 1.25 to maximize your financing options.
Yes — lenders calculate NOI using effective gross income (gross rent minus a vacancy allowance), not gross rent alone. The standard vacancy assumption is 5% for single-family rentals and 8–10% for multi-family. Using gross rent without a vacancy deduction inflates your NOI and overstates DSCR. For existing leased properties, lenders may use actual rent but still apply a market vacancy factor. Never omit vacancy from your DSCR calculation.
DSCR measures whether the property's income covers its debt — this is the lender's underwriting metric. Cash-on-cash return measures your annual cash income as a percentage of your cash invested — this is the investor's return metric. The two can diverge: a highly leveraged deal (small down payment) carries higher debt service and lower DSCR, but with less cash tied up, CoC can be higher if the property cash flows. A low-leverage deal (large down payment) has better DSCR because debt service is lower, but more equity reduces CoC. DSCR determines whether you can finance the deal at all; cash-on-cash measures your actual yield on invested capital.
Not with standard institutional DSCR lenders. A DSCR below 1.0x means the property loses money after debt service — the lender has no income coverage for their loan. Your options: (1) increase the down payment to reduce the loan and debt service, (2) negotiate a lower purchase price, (3) find a higher-rent property, or (4) use hard money for a value-add play where post-rehab rent supports a qualified refi. Private portfolio lenders occasionally fund sub-1.0x deals on strong asset basis, but expect 10–12% rates and personal recourse requirements.
Disclaimer: This calculator is provided for educational and informational purposes only. It does not constitute financial, investment, tax, or legal advice. Actual lender requirements vary by institution, loan program, borrower profile, property type, and market conditions. DSCR thresholds shown reflect general market standards as of 2026 and may differ from any specific lender's current guidelines. Consult a qualified mortgage professional and real estate attorney before making financing or investment decisions.