Valley West Mortgage
Home / DSCR loans / Calculator
Free rental-property analysis

Will the rent cover the loan? Run the numbers.

Enter the rent and complete monthly housing expense. You’ll see the property’s estimated DSCR and the exact rent needed to reach four common coverage targets.

Monthly gross rent ÷ monthly housing expense = DSCR

Property inputs

Use monthly amounts from the proposed transaction.

$
Lease rent or the rent figure you want to test.
$
$
$
$
$
Include only expenses required by the scenario or program. Treatment varies.

Important: This tool uses gross rent divided by the expenses entered. A lender may use an appraisal rent schedule, lease, vacancy factor, short-term-rental history, different expense treatment, or another program-specific method.

What the result tells you—and what it doesn’t

A DSCR above 1.00 means the gross rent entered exceeds the housing expense entered. A result below 1.00 means the property does not fully cover that expense from rent under this simplified calculation. Neither result is an approval decision.

Below 1.00

The rent is below the entered payment. A different loan amount, down payment, rent figure, or program may change the outcome.

1.00–1.24

The rent covers the entered payment with a limited cushion. Program eligibility and pricing still vary.

1.25+

The rent covers the entered payment with a larger cushion. This does not override credit, property, reserve, or appraisal requirements.

Example: why taxes, insurance, and HOA matter

InputProperty AProperty B
Gross monthly rent$2,500$2,500
Principal and interest$1,650$1,650
Taxes, insurance, HOA, other$450$700
Total housing expense$2,100$2,350
Estimated DSCR1.191.06

The two properties collect the same rent and carry the same principal-and-interest payment, but the second property’s higher recurring expenses reduce the coverage ratio. Comparing rent to principal and interest alone can make a deal look stronger than it is.

Product boundary

DSCR financing is generally business-purpose credit for non-owner-occupied investment property. It is separate from owner-occupied conventional, FHA, and VA financing. Program availability, calculation methods, property eligibility, credit, assets, reserves, entity vesting, prepayment terms, and documentation vary by lender and scenario.

Reviewed by Vatche Saatdjian, President, Valley West Mortgage · Las Vegas mortgage expert since 2004 · NMLS #65506 · Equal Housing Opportunity · Updated July 23, 2026

Take the next useful step

Use the result to investigate the specific issue affecting the property—not as a substitute for underwriting.

DSCR loan hubUnderstand the product, qualification boundaries, property types, documentation, and process. DSCR requirementsReview the factors beyond the ratio that can stop an investment-property loan. How lenders calculate DSCRSee why the rent figure and PITIA definition can differ by program. DSCR vs. conventionalCompare property cash-flow qualification with personal income and DTI qualification. Why DSCR files get deniedDiagnose rent, payment, property, appraisal, reserve, credit, and entity problems. Property eligibility checklistScreen condition, zoning, use, HOA, insurance, title, and short-term-rental risks. Reserve planning calculatorModel selected months of PITIA and projected liquid assets after closing. Veteran investor pathLearn the boundary between VA owner-occupancy benefits and separate rental financing. FHA-to-investor pathUnderstand occupancy rules and the transition from a primary home to a rental strategy. Full DSCR guideValley West Mortgage's complete rental-income overview.

DSCR calculator questions

How is DSCR calculated for a rental property?

This calculator divides monthly gross rent by principal and interest, property taxes, homeowners insurance, HOA dues, and other required housing expenses entered. Lender methods and allowable income adjustments vary.

What does a 1.00 DSCR mean?

A 1.00 result means the rent entered equals the housing expense entered. It does not guarantee that a lender or program will accept the property.

Does this calculator determine approval?

No. It is an educational estimate, not a loan approval, rate quote, Loan Estimate, or commitment to lend. A complete file may include credit, assets, reserves, appraisal, rent documentation, entity documents, and property review.

Can veterans or FHA homeowners use DSCR financing?

Potentially, for a qualifying investment property—but a DSCR loan is not a VA or FHA loan. It does not use VA entitlement or FHA insurance. Existing occupancy and program obligations must still be handled correctly.

Have a real property in mind?

Send the actual rent, payment, property type, occupancy, and purchase or refinance goal for a scenario-specific review.

Review my DSCR scenario