Investor tool · West Capital Lending, Inc.
DSCR Calculator
See whether a rental property's rent covers its full monthly payment — the number DSCR lenders actually underwrite to.
Adam DeCraene (NMLS# 2811542), Mortgage Loan Originator with West Capital Lending, Inc., helps real estate investors finance rental properties with DSCR loans — loans that qualify based on the property's rental income rather than the borrower's personal income. He shops 175 wholesale lenders across the 34 states and District of Columbia where he is licensed, so one property's numbers can be tested against many lenders' guidelines.
The property & the loan
The pre-filled figures are examples only — replace them with your own. They are not current rates, quotes, or offers.
Enter your numbers to see the property's coverage ratio.
Your scenario
The property and loan you entered.
— Debt service coverage ratio (monthly rent ÷ PITIA)- Loan amount
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- Monthly principal & interest
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- Monthly taxes, insurance & HOA
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- Total monthly PITIA
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- Monthly cash flow (rent − PITIA)
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Maximum at a 1.25 DSCR
The most this rent supports at the 1.25 benchmark, using your rate, term, taxes, insurance, HOA, and down payment.
— Maximum purchase price at 1.25 DSCR- Maximum loan amount
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- Maximum PITIA (rent ÷ 1.25)
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- Maximum principal & interest
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How lenders typically read the ratio — these are typical guidelines, and requirements vary by lender:
Strong — clears the benchmark many DSCR lenders use.
Workable — many lenders offer DSCR loans in this range; pricing and terms vary.
Below 1.00 — the rent doesn't fully cover PITIA. Fewer lenders play here; a larger down payment or different structure can change the picture — this is where having 175 lenders to shop matters.
Estimates only. This calculator is an educational estimate — not a rate quote, an offer of credit, a commitment to lend, or financial advice. The rent, rate, and costs shown are numbers you enter; actual rates, terms, and fees depend on credit profile, property, and lender approval. DSCR program guidelines vary by lender — including the minimum ratio required, reserve requirements, how rent must be documented, and credit requirements. Cash flow here is rent minus PITIA only; it does not subtract maintenance, vacancy, property management, or other ownership costs. For exact numbers on your situation, talk to Adam DeCraene, Mortgage Loan Originator, NMLS# 2811542 — call or text 949-393-6360.
The basics
What Is DSCR?
DSCR stands for debt service coverage ratio. It compares what a rental property brings in each month to what it costs to carry the loan on it:
PITIA is the full monthly housing payment: Principal, Interest, property Taxes, homeowner's Insurance, and Association (HOA) dues, if any. A ratio of 1.00 means the rent exactly covers that payment. Above 1.00, the rent covers the payment with something left over; below 1.00, it falls short.
A DSCR loan uses this ratio as the qualification. Instead of underwriting the borrower's personal income, pay stubs, or tax returns, the lender underwrites the property's cash flow — which is why DSCR loans are a common tool for investors whose tax returns don't reflect their real earnings, or who already carry several properties.
How lenders read the ratio is a set of typical guidelines, not a single rule — and requirements vary by lender. Many lenders benchmark at 1.25, treating it as the comfortable cushion. Many also lend between 1.00 and 1.24, usually with pricing or terms that reflect the thinner cushion. Loans below 1.00 exist but are limited and structure-dependent — a bigger down payment or a different property can move a deal into range. How the rent itself is documented also varies by lender: some use the property's existing lease, others use the appraiser's market-rent estimate, and some use the lower of the two. That spread of guidelines is exactly why shopping one scenario across many lenders matters.
Worked example
One Property, Run Step by Step
These are the calculator's pre-filled example figures, worked by hand so you can see exactly where each number comes from. The 7.5% rate is an example assumption entered for the estimate — it is not a rate quote.
Start with the price and down payment
Purchase price $325,000 with 25% down ($81,250) leaves a loan amount of $243,750.
Calculate principal & interest
A $243,750 loan at the example rate of 7.5% over 30 years has a monthly principal & interest payment of $1,704 (standard amortization).
Add taxes and insurance to get PITIA
$1,704 principal & interest + $300 monthly property taxes + $125 monthly insurance + $0 HOA = $2,129 total monthly PITIA.
Divide rent by PITIA
Monthly rent of $2,700 ÷ $2,129 PITIA = DSCR 1.27 — above the 1.25 benchmark many lenders use.
Check the cash flow
$2,700 rent − $2,129 PITIA = +$571 per month before maintenance, vacancy, and other ownership costs. Try your own property's numbers in the calculator above — the results update as you type.
If the ratio comes in low
How to Improve a Low DSCR
A ratio under a lender's minimum isn't always a dead end. These are the levers that actually move the number:
Make a larger down payment
A smaller loan means a smaller principal & interest payment, which lowers PITIA and raises the ratio directly. This is usually the single biggest lever.
Buy the rate down
Paying discount points to lower the interest rate reduces the monthly payment. Run both versions through the calculator to see whether the buydown moves the ratio enough to matter.
Negotiate the purchase price
A lower price shrinks the loan at the same down-payment percentage. On a thin deal, price is often the difference between a 0.95 and a 1.05.
Use accurate tax and insurance figures
Placeholder estimates — a guessed tax bill or a worst-case insurance quote — drag the ratio down. Replace them with the property's actual figures before judging the deal.
Document the strongest supportable rent
The ratio is only as good as the rent the lender will credit. A signed lease at market rent, or solid market-rent evidence for the appraiser, supports a higher figure than an optimistic guess.
Shop the scenario widely
Minimum ratios, rent documentation, and pricing differ by lender. A scenario one lender turns down at 1.10 may fit another's guidelines — Adam shops DSCR scenarios across 175 wholesale lenders.
Michigan investors
Investing From Troy, Michigan — Lending in 34 States + DC
Adam DeCraene is based in Troy, Michigan, and works with investors buying rental properties across metro Detroit and throughout Michigan — from single-family rentals to small multifamily properties. The same analysis on this page applies line by line: rent, PITIA, ratio, cash flow.
And because Adam is licensed in 34 states and the District of Columbia, Michigan investors buying out of state — or investors anywhere in his licensed footprint — can run the same DSCR analysis with him wherever the property sits. The guidelines vary by lender, not by which side of a state line the property is on, and shopping 175 wholesale lenders gives each property's numbers the widest possible read.
Common questions
DSCR Loan FAQs
What is a good DSCR for a loan?
A DSCR of 1.25 or higher is the benchmark many DSCR lenders use — the rent covers the full monthly payment (PITIA) with a 25% cushion. Ratios from 1.00 to 1.24 are workable at many lenders, though pricing and terms vary. Below 1.00, the rent doesn't fully cover PITIA; some lenders still lend there, but options are limited and depend heavily on the loan structure. These are typical guidelines — exact minimums vary by lender.
How is DSCR calculated?
DSCR (debt service coverage ratio) is the property's monthly rent divided by its total monthly housing payment, known as PITIA: principal, interest, property taxes, homeowner's insurance, and HOA dues if any. For example, $2,700 in monthly rent divided by $2,129 in PITIA gives a DSCR of 1.27.
What credit score do I need for a DSCR loan?
It varies by lender and by the property's ratio. Many DSCR lenders work with scores in the mid-600s and up, with better pricing at higher scores and higher ratios. Because guidelines differ across lenders, Adam can check your options across 175 wholesale lenders through West Capital Lending, Inc.
Can I use a DSCR loan for a short-term rental like Airbnb?
It varies by lender. Some DSCR lenders allow short-term rentals and will use projected or actual short-term rental income in the ratio, often with added restrictions — such as a lower maximum loan-to-value or a higher required ratio. Others only lend on long-term leases. The property type and income documentation rules are lender-specific.
Do DSCR loans require tax returns or personal income documentation?
Generally no. DSCR loans are qualified on the property's rental income rather than the borrower's personal income, so tax returns and pay stubs are typically not part of the qualification. Lenders still verify other parts of the file — credit, assets, and cash reserves — and exact documentation requirements vary by lender.
Work With Adam
Adam DeCraene — Mortgage Loan Originator, NMLS# 2811542, CA DRE #02448241 — with West Capital Lending, Inc. Run your property's numbers above, then put them in front of 175 wholesale lenders with one application.