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DSCR Calculator

A debt service coverage ratio (DSCR) compares rental income with monthly financing and property costs. Use this DSCR calculator to estimate your rental property's coverage and loan payment. Enter your own figures to see whether rent covers the costs you include.

Updated October 21, 2026

Enter your rental figures

Use monthly amounts in US dollars. Divide annual taxes and insurance by 12. Blank optional costs count as zero.
Property costs

HOA means homeowners association. Other costs can include maintenance, management or vacancy reserves. Include each cost once.

Enter a rate you want to test. RPC does not publish loan rates.

Amortization is the repayment period used to calculate principal and interest. A shorter loan term can leave a balance due at maturity. This tool does not calculate that balance or future rate changes.

How is DSCR calculated?

Divide monthly rent by the monthly loan payment plus the property costs entered here.

DSCR = monthly rent ÷ (monthly loan payment + taxes + insurance + HOA dues + other costs)

For an amortizing loan, payment = L × r ÷ [1 − (1 + r)⁻ⁿ]. L is the loan amount, r is the annual rate divided by 12 as a decimal, and n is the number of monthly payments. At zero interest, payment = L ÷ n. For interest-only, payment = L × r.

This rental method includes property costs in the denominator. Commercial DSCR can use net operating income divided by debt service. Confirm the required method with your loan team.

Worked example: a New York rental

These are hypothetical figures for learning, not RPC rates or an offer of financing.

Suppose monthly rent is $3,000, taxes are $300, insurance is $100, HOA dues are $0 and other costs are $100. A $250,000 loan at an example annual rate of 6%, amortized over 30 years, gives the following estimate.

Monthly loan payment
$1,498.88
Total monthly payment + costs
$1,998.88
DSCR: rent ÷ total
$3,000 ÷ $1,998.88 ≈ 1.50x
Rent left after entered costs
$1,001.12

DSCR calculator questions

What does a DSCR of 1.00x mean?

A DSCR of 1.00x means rent equals the monthly payment and costs entered here. Above 1.00x, rent exceeds those costs. Below 1.00x, rent does not cover them. Costs you leave out can reduce the amount left over.

What is RPC's published minimum DSCR for rental loans?

RPC's published residential investor minimum DSCR is 1.10x. A calculator result is an estimate, not an approval. Qualifying rent, expenses and final terms are confirmed through underwriting.

How does interest-only change the payment?

During an interest-only period, the monthly loan payment equals the loan amount multiplied by the annual interest rate divided by 12. It does not reduce the loan balance. The payment can increase when principal repayment begins. This calculator shows only the selected payment period.

Is this the same as commercial property DSCR?

This tool uses rent divided by the loan payment and entered property costs, a rental coverage estimate. Commercial property DSCR commonly uses net operating income divided by debt service instead. Do not subtract an expense from rent and also enter it as a cost. A lender's calculation can differ.