DSCR Calculator: The Formula, a Live Calculator, and What Lenders Count

Published September 2026 · By the SLA Capital team

The entire DSCR loan category runs on one piece of arithmetic: monthly rent ÷ monthly payment. Run your deal through the calculator below, then read what actually goes into each number — because that's where deals are won and lost.

The formula

DSCR = Monthly Rent ÷ PITIA, where PITIA is Principal + Interest + Taxes + Insurance + Association dues. That's it. No vacancy factor, no maintenance reserve, no property management fee — lenders use gross rent against the full payment. (Your own investment analysis should absolutely subtract those; the lender's ratio doesn't.)

Three worked examples

The comfortable deal — DSCR 1.25. Rent $2,500; P&I $1,600, taxes $250, insurance $150 → PITIA $2,000. 2,500 ÷ 2,000 = 1.25. Best pricing tier at most lenders, cushion for a rough month.

The break-even deal — DSCR 1.00. Rent $2,000 against PITIA $2,000. Qualifies at the minimum, but every vacancy week comes out of your pocket. Fine for a high-appreciation market; know what you're buying.

The short deal — DSCR 0.95. Rent $1,900 against PITIA $2,000. Below 1.0 — declined at many lenders, but not everywhere: SLA has a below-1.0 lane with additional reserves or a rate adjustment, because a 0.95 in a strong market with a strong borrower is a judgment call, not an automatic no.

What actually goes in the rent number

The lender uses the lower of the lease in place or the appraiser's market-rent report (Form 1007). Vacant property? The 1007 alone — no lease needed at SLA. Short-term rental? We use long-term market rent as the anchor, and your Airbnb upside stays yours. Over-market lease from your cousin? Expect the 1007 to govern.

Five levers when the ratio comes up short

• More down. A smaller loan cuts P&I directly — the bluntest, most reliable lever.
• Interest-only. A 5-year I/O structure drops the payment to interest alone, often moving a 0.98 to a 1.10+.
• A rate buy-down. Points up front for a lower rate — worth modeling on long holds.
• Challenge the 1007. If the appraiser's comps missed recent rentals, documented comparable leases can support a rebuttal.
• Shop the taxes and insurance. Investors routinely over-accept the first insurance quote; $50/month of premium is 2-3 points of DSCR on a typical deal.

The number after the ratio

DSCR gets you qualified; the rest of the box decides your terms — credit tier, LTV, loan size, seasoning. The full checklist is in DSCR Loan Requirements, current pricing starts at 5.95% (highest credit tier, LTV below 60%) on the public rate sheet, and if a term below trips you up, the glossary has it.