DSCR Calculator
DSCR is the single number that decides most investment-property loans — gross monthly rent divided by the full monthly payment. This calculator returns the ratio instantly and explains what the result means for financing. It is an educational estimate, not a lender decision, and is intended to help you sanity-check a property before you take it to underwriting. For how the loan itself works, see the DSCR loan program.
Inputs
Property Cash Flow
Enter your rental income and monthly housing payment.
PITIA includes Principal, Interest, Taxes, Insurance, and any Association Dues (HOA). If you'd like help estimating these, use “Build from parts.”
Rent $2,800 / PITIA $2,200
Underwriting Snapshot
Debt Service Coverage
Your property's ability to cover the monthly housing payment.
DSCR Ratio
Coverage Range
Monthly Cash Flow
—
Surplus after housing payment
Annualized Cash Flow
—
12 months of projected surplus
What this means: Enter gross monthly rent and the full PITIA payment to generate an underwriting snapshot. DSCR = rent ÷ PITIA.
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How DSCR Is Calculated
The formula is deliberately simple: DSCR = Gross Monthly Rent ÷ Monthly PITIA. PITIA is the complete housing payment — Principal, Interest, property Taxes, Insurance, and Association/HOA dues. The reason the full payment matters is that a property can have strong rent and still fail coverage once taxes, insurance, and dues are included. In condo-heavy markets this is the most common reason an otherwise healthy-looking deal underwrites tight.
A ratio of 1.00 means the rent exactly equals the payment. Above 1.00, the property produces surplus cash flow; below 1.00, the rent does not fully cover the obligation. Most capital sources reference a minimum DSCR and price leverage in tiers around it, but the specific threshold, whether they use lease rent or appraiser market rent, and how they treat vacancy all vary by source — which is why this tool is a starting point, not a decision.
Association dues are the variable investors most often forget to include. A unit with $3,200 rent and a $2,650 payment looks strong — until $900/month in dues moves the real PITIA to $3,550 and the ratio below 1.00. Use the built-in PITIA builder to capture every component.
How to Read Your Result
| DSCR range | What it generally signals |
|---|---|
| 1.25 and above | Strong, well-cushioned coverage; typically the widest program access and best pricing tiers |
| 1.00 – 1.24 | Rent covers the payment with margin; financeable with many sources, often at adjusted leverage or pricing |
| 0.75 – 0.99 | Slight shortfall; some programs still lend with offsetting strengths such as lower leverage or reserves |
| Below 0.75 | Significant shortfall; usually requires restructuring the payment or rent assumptions |
These bands are general industry references for interpretation only — they are not Alpha Equity Lending program minimums or commitments, and no rate or approval is implied. Two capital sources can treat the same ratio differently. The value of knowing the number early is that it tells you which conversation you are having before you are under contract.
Using This by Market
The same formula behaves differently across Florida because the payment side changes. In Miami, high-rise association dues are the dominant ratio-compressor. In West Palm Beach, wind-insurance premium is usually the swing variable on detached and small-multifamily files. In Orlando, short-term-rental income is projected and haircut rather than taken from a lease, so the rent input itself is the moving part. Modeling the property with its real local carrying costs — not a generic estimate — is what makes the number meaningful.
DSCR Calculator — Frequently Asked Questions
What is a DSCR calculator?
What does a DSCR of 1.00 mean?
What is included in PITIA?
What DSCR do I need to qualify?
Does this calculator reflect Alpha Equity Lending's actual terms?
Should I use lease rent or market rent?
Why does my strong-rent property show a low DSCR?
Can a property below 1.00 DSCR still be financed?
Have a real scenario to run?
Send the property and the numbers. We confirm the ratio the way an actual capital source will see it — not a generic estimate — typically within 24 hours.