Smart Lending Starts With
the Right Numbers
Enter your property details below and get an instant read on your debt-service coverage ratio — no login, no obligation, no guesswork.
Understanding Your DSCR
Your DSCR ratio determines your loan terms — leverage, pricing, and reserve requirements. Here's how your DSCR is evaluated.
Better rates, max leverage, minimal conditions — property cash-flows comfortably above debt service.
Property covers debt. Standard pricing and leverage — the most common qualifying range for investors.
Still qualifies at LGV Capital. Typically requires lower LTV, stronger credit, or larger reserves to offset.
Rent doesn't cover debt. Options exist: interest-only, lower LTV, rate buydowns. Talk to a loan officer to explore.
DSCR is one input — not the whole picture. Final terms depend on the full file: credit, reserves, experience, property type, market, and loan structure. The tiers above describe what your DSCR signals — not a guarantee of pricing or leverage.
The Math Behind Your Number
DSCR is a simple ratio — but the inputs matter. Here's the formula lenders use, with a real-world example.
Explore DSCR Loan Programs
Same calculator. Different strategies. Pick the program that matches how you're building your portfolio.
Long-Term Rental
Single-family and 2–4 unit rentals qualified on lease income alone. 30-year fixed or ARM.
Short-Term Rental
Airbnb and VRBO income accepted via AirDNA projections or T12. Most banks won't touch these.
Multifamily
2–11 unit properties qualified on combined rents. Partial vacancy still qualifies.
BRRRR Refinance
Cash-out refi with no seasoning required. Pull equity the moment your rehab stabilizes.
Interest-Only
Lower monthly payment, higher DSCR, max cashflow during the IO period.
Not Sure Which Fits?
See the full DSCR program breakdown — eligibility, parameters, and side-by-side comparison.
Get a Term Sheet in Under 24 Hours
Ran your numbers and want to talk to a loan officer? Skip the back-and-forth—submit your deal and get real terms back as soon as the same day.
Get a Term SheetQuestions About Your Number
Common questions investors ask after running the calculator — answered.
A DSCR of 1.0 is break-even — rent exactly covers debt. Most lenders prefer 1.20 or higher for best pricing and full leverage. LGV Capital qualifies down to 0.75, which gives investors more flexibility than traditional banks (which typically require 1.20+).
DSCR equals Monthly Rent divided by Monthly PITIA (Principal, Interest, Taxes, Insurance, and HOA/Association fees). For example: $2,800 rent ÷ $2,500 PITIA = 1.12 DSCR. Anything above 1.0 means the property covers its debt service.
Yes. LGV Capital qualifies DSCR loans down to 0.75, well below standard bank minimums. Sub-1.0 deals typically require compensating factors — lower LTV, stronger credit, larger reserves, or interest-only structuring. Most banks decline these outright; we underwrite them every day.
Yes — always. Lenders calculate DSCR on full PITIA, not just principal and interest. Skipping taxes and insurance inflates your DSCR by 10–20% on average and gives you an unrealistic number. Use the Advanced Options to include them for an accurate result.
Use a conservative estimate based on current DSCR market rates. Your actual rate depends on credit, LTV, DSCR, property type, and prepay structure. The most accurate number comes from a free term sheet — typically back within 24 hours, with no credit pull.
Lenders use the lower of the executed lease or the appraiser's market rent assessment. For modeling purposes, use realistic market rent for your area — inflating the number gives you a misleading DSCR. For new acquisitions with no lease, the appraisal's market rent figure is what counts.
No — DSCR is calculated on gross rent vs. debt service only. Vacancy and maintenance aren't part of the formula. That said, smart investors model those separately to understand true cashflow. The net cashflow line in our calculator shows pre-vacancy cashflow, which is the lender's view.
Three levers move DSCR fastest: lower the loan amount (bigger down payment), choose an interest-only structure (drops monthly payment significantly), or buy a higher-yielding property. Negotiating purchase price down also helps — every $10K reduction in loan amount drops your monthly debt service by roughly $60–70.
Ran your numbers and ready to talk?