DSCR loan calculator
Enter the rent and the numbers on your deal. Get the DSCR ratio, the monthly payment, and the maximum loan the property supports, the same math a DSCR lender runs before approving.
DSCR = monthly rent ÷ full monthly payment (principal, interest, taxes, insurance, HOA). Max loan holds your rate, term, taxes, and insurance fixed. Rate is not a Lineage quote; edit it to match yours. Estimates only, not a loan offer.
DSCR compares the property’s monthly rent to its full monthly payment (principal, interest, taxes, insurance, HOA). Most lenders approve at 1.0 or higher; 1.25+ typically earns better pricing. Estimates only. Not a loan offer or a commitment to lend.
Estimates only. Not a loan offer or a commitment to lend. Actual terms depend on credit, property, location, and market conditions. DSCR loans through Lineage are originated by our lending partner.
How this works
DSCR stands for debt service coverage ratio. It compares what a property earns to what it owes: monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.0 means the rent exactly covers the payment. Most DSCR lenders approve at 1.0 or higher, and pricing improves as the ratio climbs.
That’s the whole reason investors use DSCR loans: the property qualifies on its own income, not your W-2, the same thing Lineage Lending checks. This calculator runs the same first-pass math a lender runs. If the ratio clears with room to spare, the deal is worth a closer look. If it doesn’t, you just saved yourself an application. New to DSCR loans? Start with the full guide →
Interest-only mortgage calculator for rental properties
Turn on interest-only under advanced options to model an IO loan. The payment drops to interest, taxes, and insurance, which lifts your DSCR for the same rent, and the calculator shows the equivalent 30-year fully amortized rate so you can compare an IO quote against a fixed one on equal footing. The balance doesn’t pay down during the interest-only period, and the payment steps up when it ends.
Common questions
Monthly gross rent divided by the full monthly payment: principal, interest, property taxes, insurance, and HOA dues. $1,700 rent against a $1,360 payment is a DSCR of 1.25. Some lenders and analysts compute DSCR from net operating income instead of gross rent, which produces a lower number for the same deal. This calculator uses the gross-rent convention most DSCR loan programs underwrite on.
Most lenders approve at 1.0 or above. At 1.25 and higher you'll typically see better rates and more program options. Below 1.0, the rent doesn't cover the payment, and you'd be feeding the property every month.
Some lenders offer sub-1.0 programs at higher rates and larger down payments, but the honest read is that the deal doesn't work at those numbers. Change something real: a lower price, a bigger down payment, or a property that rents for more.
Typically 20–25%. Some programs go to 15% with a strong ratio and location. A bigger down payment raises your DSCR because it shrinks the payment.
For leased properties, the lease. For vacant ones, the appraiser's market-rent opinion. Lineage marketplace properties use rent comps from the local property manager based on actual leases.
No tax returns, W-2s, or pay stubs. They check credit (680+ typical), verify the rent, and run this ratio. The property qualifies itself.
The payment drops to interest, taxes, and insurance only, which raises your DSCR for the same rent. The balance doesn't shrink during the IO period, and the payment steps up when it ends. The calculator shows both payments and the fully amortized rate your IO payment is equivalent to.
No. It’s a first-pass estimate with your inputs. Actual terms depend on credit, property, location, and market conditions. DSCR loans through Lineage are originated by our lending partner.