Divide the monthly rent you enter by the full monthly housing cost included in this calculator. The result shows how much of that cost the entered rent covers. It gives you a starting point for a loan discussion, while the lender still has to confirm which rent and payment figures it will accept.
What you enter
Enter monthly rent and the proposed principal and interest payment. Add annual property taxes and insurance, plus monthly HOA or condo dues. Include any separate flood insurance premium in the insurance total.
Use a proposed payment or a payment you have calculated from a specific loan scenario. Do not enter an existing owner's mortgage payment for a new purchase. Your financing could produce a different payment.
Annual taxes and insurance are divided by 12 to put everything on a monthly basis. If the payment you enter already includes those charges, separate them first. Otherwise you will count them twice. A separate bill still belongs in the housing cost even when it is paid outside escrow.
Example
Assume $3,600 in monthly rent, $2,300 in principal and interest, $4,800 in annual taxes, $2,400 in annual insurance and $100 in monthly HOA dues. These are made up figures for this example.
Taxes add $400 a month and insurance adds $200. The included housing cost is $3,000. Divide $3,600 by $3,000 and the ratio is 1.20.
The $600 difference has not covered management, repairs, vacancy or any other operating costs excluded from this screen. Use Short Term Rental Cash Flow Calculator to review those separately. A coverage ratio and a profit calculation answer different questions.
What is my DSCR ratio?
It is the entered rent divided by the included monthly housing costs. A result of 1.00 means the two amounts are equal under this calculator's assumptions.
This page uses a rent based planning screen. Commercial property analysis can instead calculate DSCR from net operating income divided by debt service. Keep the definitions consistent when comparing results. For the longer explanation, see How to Calculate DSCR for a Rental Property: Formula & Math.
How do taxes, insurance and HOA change it?
Higher included costs increase the denominator and lower the ratio when rent stays the same. Taxes, insurance and HOA dues therefore matter even when the principal and interest payment looks manageable.
Enter property specific estimates. If a bill is uncertain, save a second scenario using the higher amount you want to test. This is a useful way to see how much room the rent leaves.
What ratio do lenders usually want?
The required ratio and the accepted income method need to be checked against the actual program, property use and proposed loan structure.
Do not read the example result as a minimum or a promise of pricing. See DSCR Loan Requirements in Florida: Credit, Down Payment, Ratio, Reserves and Documents for the broader approval review.
What if the ratio is below 1.0?
The entered rent is less than the included housing costs. First check the rent figure, payment components and annual versus monthly entries before changing the proposed financing.
Program availability below that result has to be confirmed separately. See DSCR Loans Below 1.0, No Ratio and Personal Income: What Lenders Actually Check.
This calculator gives an estimate only. It is not a loan offer or approval.
Sources
- CFPB Mortgage payment components. What goes into my total monthly mortgage payment; reviewed August 28, 2023. Checked October 16, 2026.
- OCC Commercial Real Estate Lending Handbook. Income Generating Capacity of CRE, Debt Service Coverage Ratio and Value Analysis, printed pages 42 to 44. Checked October 16, 2026.
- Fannie Mae Mortgage Calculator. Disclaimer; How to use this calculator. Checked October 16, 2026.