DSCR Ratio Calculator: does this Arizona rental cash-flow?
DSCR (Debt Service Coverage Ratio) is the math that drives DSCR loan qualifying, rent divided by the total mortgage payment. Enter your numbers below to see the ratio and which qualification tier it lands in.
Program figures verified July 2026 — details change; confirm your scenario with us.
Calculate your DSCR
All fields are monthly amounts in US dollars. Numbers update live as you type.
DSCR will appear here once you start entering values.
This calculator is an educational tool. Actual DSCR qualifying numbers depend on the appraiser's rent analysis, lender-required reserve calculations, and program-specific overlays. Subject to investor approval. No interest rate is shown or implied.
How DSCR works
Debt Service Coverage Ratio = monthly rental income ÷ total monthly property payment, including principal, interest, taxes, insurance, and association dues if applicable.
- DSCR above 1.0 means the property cash-flows positively after the mortgage payment.
- DSCR at 1.0 means rent exactly equals the property's payment, a break-even structure.
- DSCR below 1.0 means negative monthly cash flow; some programs still finance with rate and reserve adjustments.
The lender isn't analyzing your personal debt-to-income here. The question on a DSCR loan is whether this property covers its own monthly cost, see the full DSCR loan program guide for how personal income is skipped entirely.
DSCR qualification bands, what to expect
| DSCR Ratio | Tier characterization | What it typically means |
|---|---|---|
| 1.25+ | Strongest tier | Cleanest program access; full leverage on most programs |
| 1.10–1.24 | Strong | Standard pricing; full leverage often available |
| 1.00–1.09 | Qualifying | Property breaks even or modestly positive; standard programs qualify |
| 0.85–0.99 | Sub-1.0 | Some programs allow with rate/leverage adjustments |
| 0.75–0.84 | Low-DSCR | Specialized programs only; larger down payment, higher rate |
| Below 0.75 | No-ratio territory | "No-ratio" programs that don't require coverage; highest pricing |
Specific eligibility depends on credit score, loan amount, property type, and investor overlays (2026 parameters, verified July 2026). Subject to investor approval.
Want to model real DSCR loan pricing?
The calculator above gives a quick read on a property's coverage ratio. To translate that into a real loan structure, rate, leverage, reserves, closing timeline, bring the specific property and Mike will model it against current investor guidelines.
See also: the full DSCR loan program guide and Airbnb / short-term-rental DSCR loans.
Common questions
What number does the appraiser use for rent on a vacant property?
On DSCR purchase loans for vacant properties, the appraiser provides a market-rent analysis used as the qualifying rent. For tenant-occupied properties, the existing lease plus rent-receipt history is typically used instead.
Is 1.25 always the minimum DSCR ratio to qualify?
No. Most 2026 programs qualify from a 1.00 ratio, and some go to 0.75 or use a no-ratio structure that skips the coverage test entirely, usually paired with a higher FICO floor (680+) and lower leverage (around 70% LTV). A 1.25+ ratio prices better; it isn't the minimum bar to qualify.
Why are taxes and insurance included in the calculation?
Because the lender's calculation uses the total monthly property obligation, principal, interest, taxes, insurance, and association dues, as the denominator. Leaving any of those out overstates the actual DSCR.
Does this work for short-term rentals like Airbnb?
Short-term rental financing uses a different income basis depending on the program. Some lenders use 12-month platform-history revenue; others accept only the appraiser's long-term market-rent estimate. Enter whichever monthly figure your specific investor uses as rent, and confirm the basis before comparing two pre-approvals.
Is this calculator a quote or a commitment to lend?
No. This tool is illustrative and informational only, not a loan offer, quote, pre-approval, pricing estimate, or commitment to lend. It never shows an interest rate. Actual DSCR qualifying numbers depend on the appraiser's rent analysis and the specific lender's underwriting.
Ready to see if this is the right program?
Start the application or book a 20-minute call. Mike will model real numbers for the actual property, not estimates.