DSCR loan calculator
Two different formulas travel under the name DSCR, and they give different answers on the same property. Pick the one your lender uses — the calculator will not choose for you, because being handed the wrong one is how a borrower arrives at an underwriting surprise.
Coverage, PITIA basis
- Enter the loan amount.
- Enter the gross annual rent to calculate DSCR.
The two definitions
Commercial and agency underwriting divides net operating income by annual debt service. Operating expenses come out of the numerator first, so vacancy, management and maintenance all push the ratio down.
Most single-family DSCR loan programs divide gross rent by PITIA — principal, interest, taxes, insurance and association dues. Nothing is deducted for vacancy, management or repairs, so on the same property this reads materially higher. That is a program convention, not an accounting identity, and it is why the ratio your lender quotes may not match the one you calculated.
Why there is no minimum shown here
Because there isn't one to show. Published minimums vary by loan type and by tier — Fannie Mae's multifamily standards, for instance, set DSCR requirements per mortgage loan type through its underwriting guide rather than as a single figure, and single-family DSCR loan products are non-agency programs whose thresholds each lender sets and moves as rates move.
Enter the number your lender actually quoted you and the calculator measures against that. A figure invented here would be worth less than the one in your term sheet.
The three levers when it comes up short
A ratio below your lender's minimum has only three fixes, and they are all arithmetic: raise the income, lower the payment, or put more money down so there is less loan to cover. Interest-only periods raise the ratio by lowering the payment, which is why some programs offer them — and why the ratio goes back down when the period ends.