DSCR Calculator for Texas Investment Properties
DSCR (debt service coverage ratio) is the number lenders use to judge whether a rental property pays for itself: monthly rental income divided by the property’s full monthly payment (principal, interest, taxes, insurance, and any association dues). Enter your numbers below — the math updates instantly, and nothing you type is stored or sent anywhere.
This calculator is an educational tool, not a loan decision, approval, or offer of terms. Program requirements vary.
A worked example
Say a Frisco rental brings in $2,500 per month. The full monthly payment is $1,500 principal and interest, $350 taxes, $120 insurance, and $30 HOA — a total of $2,000. Divide: 2,500 ÷ 2,000 = DSCR 1.25. The property earns 25% more than it owes each month, which is exactly the cushion the most common DSCR benchmark looks for.
What lenders actually do with this number
DSCR replaces the personal income review in a DSCR loan: no tax returns, no employment verification, no personal debt-to-income calculation. The stronger the ratio, the more program options open up. Ratios below 1.25 — even below 1.0 — are not automatic rejections; they simply change which structures make sense. Rent is documented with your lease or a market rent analysis from the appraisal.
Jimmy D. Williams, TPRG Capital, NMLS #2692844 reviews these numbers with investors every week. Send us your deal and we will confirm the math against live program guidelines.
This content is for general information only and is not a commitment to lend or an offer of specific terms. Program guidelines, qualification requirements, and terms are subject to change without notice. All loans are subject to credit approval and are not guaranteed. TPRG Capital is a mortgage broker and does not make loans. TPRG Capital, NMLS #2692844. Jimmy D. Williams, Residential Mortgage Loan Originator, NMLS #1860818. Equal Housing Opportunity. Licensed in Texas.
Frequently Asked Questions
What DSCR ratio do lenders look for?
Requirements vary by investor and by program. A ratio above 1.00 means the property’s rent covers its debt service; higher ratios generally open more options. Some programs consider properties below 1.00 with compensating factors.
What counts as income in the DSCR calculation?
Generally the property’s gross rent, supported either by a lease or by a market rent determination in the appraisal. Which one an investor accepts varies, and it matters — a market rent figure can differ meaningfully from what a property currently collects.
Does this calculator determine whether I qualify?
No. It estimates a ratio. Qualification also involves credit, reserves, the property type, the appraisal and the individual investor’s guidelines. Treat the result as a starting point for a conversation.
Can I use a DSCR loan for a short-term rental?
Several investors allow it, often using documented platform income rather than a long-term lease. Guidelines differ noticeably between investors on short-term rentals, which is a good reason to work through a broker.
TPRG Capital · (972) 679-1613
Jimmy D. Williams, Residential Mortgage Loan Originator, NMLS #1860818 · TPRG Capital, NMLS #2692844
5 Cowboys Way, Suite 300, Frisco, TX 75034 · Licensed in Texas · Equal Housing Opportunity