DSCR Loan Calculator for Residential & Commercial Properties
Calculate your debt service coverage ratio, monthly payment, and cash flow in seconds — for residential rentals or commercial property. Then get a real term sheet in minutes, with rates from 6.25% and no tax returns required.
Property & loan details
What Is DSCR and How Is It Calculated?
DSCR stands for debt service coverage ratio — the single number that determines whether an investment property qualifies for a DSCR loan. Instead of reviewing your tax returns, W-2s, or personal debt-to-income ratio, a DSCR lender asks one question: does the property's rent cover its payment?
PITIA is the property's full monthly housing payment: principal, interest, taxes, insurance, and association dues. A rental that brings in $3,000 per month against a $2,400 PITIA payment has a DSCR of 1.25 — meaning the rent covers the payment 1.25 times over, with $600 of monthly cash flow left on the table.
What DSCR Do Lenders Require?
Every lender draws its lines slightly differently, but the debt service coverage ratio calculator above reflects how most programs — including ours — price a deal:
| DSCR | What it means | Typical outcome |
|---|---|---|
| 1.25× and up | Strong positive cash flow | Best rates and maximum leverage, up to 80% LTV |
| 1.00× – 1.24× | Rent covers the payment | Qualifies at standard terms |
| Below 1.00× | Rent falls short of the payment | Still fundable with adjusted leverage or pricing |
A ratio below 1.00 is not an automatic decline. As a direct lender with in-house underwriting, we regularly structure sub-1.00 DSCR deals with a larger down payment, an interest-only option, or a rate buydown — the calculator lets you test each of those levers instantly.
Five Ways to Improve Your DSCR
If your ratio comes in lower than you'd like, try adjusting these inputs in the calculator to see the impact in real time. Raising rent to market levels is the most direct lever, since every added dollar of rent increases the ratio without touching the loan. A larger down payment shrinks the loan amount and the payment with it. Switching to an interest-only amortization drops the payment meaningfully in the early years. Buying down the rate with points lowers the payment for the life of the loan. And shopping the insurance premium — often overlooked — can move a borderline deal over the 1.00 line by itself.
Why Investors Choose a DSCR Loan
DSCR loans are business-purpose Non-QM loans built specifically for real estate investors. Because qualification rests on the property's cash flow rather than your personal income, there are no tax returns, no W-2s, and no income verification. Our DSCR loan program offers rates from 6.25%, up to 80% LTV, 30-year fixed, ARM, and interest-only options, and vesting in an LLC, LP, or personal name. AI-accelerated underwriting returns a real term sheet in minutes, and most loans close in about five business days.
Scaling past a handful of rentals? Our portfolio loan program consolidates five or more properties into a single loan. Buying a property that needs work before it rents? Start with a bridge or fix-and-flip loan and refinance into a DSCR loan at stabilization.
DSCR for Commercial Properties
The same coverage logic applies to commercial real estate — multifamily (5+ units), mixed-use, retail, office, industrial, and self-storage — but the formula runs on annual figures instead of monthly rent:
NOI is the property's annual gross income minus operating expenses (taxes, insurance, management, maintenance, utilities, reserves) — before debt payments. A building producing $180,000 of NOI against $144,000 of annual loan payments carries a 1.25× DSCR. Commercial lenders typically underwrite to a minimum of 1.20×–1.25× on stabilized NOI, and unlike residential DSCR loans, commercial deals are usually structured with a shorter balloon term over a longer amortization — which is why the commercial calculator above shows your balloon balance at maturity.
Commercial rates are priced off an index rather than a flat advertised number: our commercial loans price at the 5-year Treasury yield plus a 5.00% spread, so as the Treasury market moves, so does your rate. The commercial calculator above lets you plug in the current 5-year Treasury and see the all-in rate, payment, and DSCR update instantly. Use the Commercial Property tab to test loan amount and amortization against your NOI, then explore our commercial real estate loan programs for purchase, refinance, and cash-out on stabilized and value-add assets.
Numbers Work? Get the Real Term Sheet.
The calculator is an estimate — the term sheet is an offer. Five minutes, ten questions, no tax returns. Direct lender: funded by us, underwritten by us, closed by us.
Start My ApplicationDSCR Loan Calculator FAQ
How is DSCR calculated?
Divide the property's gross monthly rent by its total monthly PITIA payment (principal, interest, taxes, insurance, and HOA dues). A property renting for $3,000 with a $2,400 payment has a DSCR of 1.25.
What DSCR do I need to qualify?
Best pricing typically starts at 1.25×. Ratios between 1.00× and 1.24× generally qualify at standard terms, and we can structure deals below 1.00× with adjusted leverage or pricing.
Do DSCR loans require tax returns or income verification?
No. DSCR loans qualify on the property's cash flow, not your personal income. No tax returns, W-2s, paystubs, or debt-to-income analysis.
What is a good DSCR for a rental property?
1.25× or higher is considered strong and unlocks the best rates and leverage. 1.00× means the rent exactly covers the payment; anything above that is positive monthly cash flow.
Can I get a DSCR loan in an LLC?
Yes. We allow vesting in an LLC, LP, or personal name, and most investors close in an entity.
How do I improve my DSCR?
Raise rent to market, put more down, choose an interest-only option, buy down the rate, or shop the insurance premium. Test each lever in the calculator above.
How fast can a DSCR loan close?
Term sheets are issued in minutes through AI-powered underwriting, and most DSCR loans close in about five business days with title, appraisal, and closing run in parallel.
How is DSCR calculated on commercial property?
Commercial DSCR divides annual net operating income (gross income minus operating expenses, before debt) by annual debt service. Most commercial lenders look for a minimum of 1.20×–1.25× on stabilized NOI.
What property types qualify for commercial DSCR financing?
Multifamily (5+ units), mixed-use, retail, office, industrial, and self-storage. Deals are typically structured with a balloon term over a longer amortization — for example, a 5-year term on a 25-year schedule.
How are commercial loan rates priced?
Our commercial loans price at the 5-year Treasury yield plus a 5.00% spread. Because the index moves daily, your final rate is set based on the Treasury yield at the time of lock.
Calculator figures are estimates for illustration only and do not constitute a loan offer, rate quote, or commitment to lend. Advertised rates are subject to change and depend on borrower and property qualification. Actual rates, terms, and approval are determined through full underwriting. New Century Lending LLC · NMLS #1740818 · Equal Housing Lender · 175 SW 7th Street, Suite 1216, Miami, FL 33130.