DSCR Loan Calculator for California Rental Properties

This DSCR loan calculator shows whether a rental property’s rent covers its full monthly payment: principal and interest, property tax, insurance and HOA dues. Enter the rent, price, down payment and the rate you were quoted, and it shows your debt service coverage ratio plus the rent needed to reach 1.00 and 1.25.

Get My Options Call (415) 717-0477 Text Ted

5.0 Google Rating

NMLS #223442

24 Years Closing Loans

Get Your Mortgage Options

By submitting, you agree Ted may call, text or email you. Msg and data rates may apply. Reply STOP to opt out. Disclosures

DSCR Loan Calculator at a Glance

What the DSCR calculator measures and where its numbers come from.

ItemHow the calculator handles it
DSCRMonthly rent divided by the full monthly payment (PITIA)
Payment (PITIA)Principal and interest, property tax, insurance and HOA dues
Interest rateYou enter your own; the calculator never assumes one
Loan types30-year fixed, 5-, 7- and 10-year ARMs, and 10-year interest-only
Property taxStarts at 1.1% per year; California’s base rate is 1% plus local voter-approved bonds
InsuranceEstimate only. Starts at 0.2% of the price per year. Fire zones, flood insurance and HOA coverage can change it, so check with Ted
Rent targetsShows the rent needed for a 1.00 and a 1.25 ratio
Next stepCall or text (415) 717-0477 to check your real numbers

How to calculate a DSCR loan?

Divide the property’s monthly rent by its monthly payment: principal and interest, property tax, insurance and any HOA dues, which lenders call PITIA. A result of 1.00 means the rent exactly covers the payment, and anything above 1.00 leaves extra cash flow. Lenders usually use a current lease or the appraiser’s market rent estimate.

A DSCR loan qualifies an investment property mainly on its rent instead of your tax returns. Enter the monthly rent, the price, your down payment and the rate you were quoted, then add taxes, insurance and HOA dues to see the ratio.

Use the current lease or the market rent you expect. Lenders often use the appraiser’s rent estimate.
Enter the rate you were quoted or want to test.
California’s base rate is 1% plus local voter-approved bonds. Check the county tax bill.
Estimate only. Fire zones, flood insurance and HOA coverage can change it. Check with Ted.
Estimated DSCR (debt service coverage ratio)
—
Enter the rent, property price, down payment and interest rate to see the ratio.
Send this estimate to TedCall TedText Ted

Estimates only. This calculator uses the numbers you enter. It is not a loan offer, rate quote or approval. Each lender figures DSCR its own way, using its own rent figure, insurance and payment, so your result can differ. Insurance is an estimate. Ted Erickson, NMLS #223442, Barrett Financial Group, L.L.C., NMLS #181106. Equal Housing Opportunity.

How the DSCR Loan Calculator Works

  • Principal and interest come from the standard amortization formula for your loan amount and rate over 30 years.
  • On the interest-only option, the payment is interest only for the first 10 years, and the calculator shows what the ratio would be once principal payments start.
  • Property tax is the price times your tax rate, divided by 12. Insurance is estimated the same way from the percentage you enter.
  • DSCR is the monthly rent divided by the total payment. The calculator also shows the rent you would need for a 1.00 and a 1.25 ratio.
  • The send button puts your numbers into the form below so Ted can review them with you.

What Lenders Look at Besides the Ratio

The ratio is only the start. DSCR lenders also check your credit, your cash reserves, the property and how they count the rent, and each lender sets its own rules. A deal one lender passes on can fit another. See Ted’s DSCR loan requirements guide, or use the California mortgage calculator for a home you will live in.

A calculator only knows the numbers you give it. Call or text Ted at (415) 717-0477 with the property and the rent, and he will tell you plainly which DSCR lenders fit the deal.

Tell Ted What Happened

Got turned down, stuck in underwriting, or have a deal that doesn’t fit the box? Call or text Ted directly, or start your application online.

Call (415) 717-0477
Text Ted
Apply Online

Theodore Emery Erickson · NMLS #223442 · (415) 717-0477
Barrett Financial Group, L.L.C. · NMLS #181106 · NMLS Consumer Access
Branch: 3207 Grey Hawk Court, Suite 110, Carlsbad, CA 92010

CA 60DBO-46052 and 41DBO-148702. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Equal Housing Opportunity. Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and property eligibility.

DSCR Loan Calculator Questions

Straight answers for investors running the numbers on a rental.

Call or text (415) 717-0477

Get My Options

A 1.25 DSCR means the property’s rent is 25% more than its full monthly payment, including tax, insurance and HOA dues. In other words, the rent covers the payment with a quarter left over. That cushion shows a lender the property can carry itself, which can open up more lender choices.

A ratio below 1.00 is usually seen as weak, because the rent does not fully cover the payment and you would cover the gap yourself. Many lenders look for 1.00 or higher. Some lenders still allow lower ratios with stronger credit or reserves, so a low ratio is worth a second look.

DSCR loans are non-QM loans, so costs are often higher than a standard loan, and lenders usually ask for more cash reserves. They are for investment properties only, not a home you live in. The trade-off is that you qualify on the rent instead of your tax returns. See how non-QM loans work.

Usually not, when the rent covers the payment. Lenders mainly look at the ratio, your credit, your reserves and the property, not your tax returns or job history. Rules vary a lot between lenders, so a broker who can shop several DSCR lenders often finds a fit when one lender says no.