Methodology
How this calculator works
This rental calculator estimates coverage from the rent and payment assumptions you enter. Commercial files may instead compare NOI with annual debt service.
- DSCR (this tool)
- Qualifying monthly rent ÷ modeled monthly housing / debt payment, per the inputs shown.
Methodology varies by program. This estimate is not an approval, credit decision, or Pillar quote. See the DSCR calculation guide for PITIA versus NOI approaches.
Frequently asked questions
What is a DSCR loan?+
A DSCR (Debt Service Coverage Ratio) loan qualifies rental income against the property's debt service rather than personal income documentation alone. Requirements vary by lender.
What DSCR ratio do lenders typically want?+
Many programs look for 1.0x minimum; 1.25x or higher is often considered stronger. Minimums depend on property type, credit, and reserves.
What counts as monthly PITIA?+
Principal, interest, taxes, insurance, and association dues (if applicable). Use your best estimate of the full housing payment for the loan you are modeling.
Is this calculator a loan approval?+
No. It is an estimate only and not a commitment to lend. Request DSCR options through the form or investor funnel for a scenario review.
Keep exploring
Understand the DSCR calculation
Compare the estimate with the applicable program’s rent, payment, reserve, and cash-to-close methodology.
How to Calculate DSCR for a Rental Property
Work through rent, PITIA, methodology differences, and stress cases.
DSCR Loans vs Conventional Investment Property Loans
Compare documentation, qualification focus, and when DSCR structures may fit.
Debt Yield vs DSCR
See when a proceeds test and a coverage test tell different stories.