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.