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Calculators/Real Estate & Mortgages
DSCR Calculator
Calculate your Debt Service Coverage Ratio — the key metric lenders use to approve investment property loans.
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DSCR Analysis
Total Monthly Debt$2020
DSCR Ratio1.238
Lender StatusBorderline
DSCR
1.24
Status
Borderline
Net Monthly
+$480
How to Use This Calculator
1
Enter the expected monthly rental income
Use the market rent for the property — what a tenant would actually pay. Some lenders use 75% of rent to account for vacancy. Enter the gross market rent.
2
Enter the proposed monthly mortgage payment
The principal + interest payment on the DSCR loan you're applying for. Get this from your lender's quote.
3
Enter taxes, insurance, and HOA
These are part of your total monthly debt obligation. In Texas, property taxes run $200–$600/month depending on property value and county. Get exact figures from the property's tax records.
4
Interpret the DSCR result
DSCR = Monthly Rent ÷ Total Monthly Debt Service. Most DSCR lenders require 1.0–1.25 minimum. A DSCR of 1.25 means the property generates 25% more income than the debt payments.
Real-World Examples
Houston SFR — DSCR Approval
Monthly Rent
$2,400
Mortgage (P&I)
$1,420
Taxes + Insurance
$480
Total Debt
$1,900
ResultDSCR: 1.26 — Qualifies
Just above the 1.25 threshold most Texas DSCR lenders require. Solid approval.
Austin Condo — DSCR Challenge
Monthly Rent
$2,800
Mortgage (P&I)
$2,100
Taxes + Insurance + HOA
$750
Total Debt
$2,850
ResultDSCR: 0.98 — Doesn't Qualify
Austin's high prices make DSCR loans difficult. Consider a larger down payment to lower the mortgage and improve DSCR.
Frequently Asked Questions
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