DSCR = rent ÷ PITIA. We compute the payment (principal + interest from your price, down, rate, and term) and add taxes, insurance, and HOA to get PITIA, then divide the rent by it. 1.0+ generally qualifies; 1.25+ earns the best terms. See Requirements.
Compute your DSCR
Adjust the inputs — the ratio updates instantly.
Reading your result
The color tells the story at a glance: green means you clear 1.25 (best pricing), amber means 1.0–1.24 (qualifies, standard pricing), and red means below 1.0 (financeable on some programs with more down). Three levers move the ratio most:
Down payment
More down lowers PITIA directly — the fastest way to lift a borderline DSCR into a better tier.
Interest-only structure
An IO payment is lower than principal-and-interest, so the same rent produces a higher DSCR. Try the IO term in the dropdown.
Rent vs price
Higher-rent, lower-price markets (many inland CA metros) hit the ratio far more easily than pricey coastal ones.
Frequently asked
How does it work?
Rent ÷ PITIA (principal, interest, taxes, insurance, HOA). 1.0+ generally qualifies.
What do I need to pass?
≥1.0 to qualify; 1.25+ for best rates and LTV. The color flags where you land.
How do I improve it?
More down, interest-only, or a higher-rent/lower-price property.
Is it an approval?
No — an estimate. Real DSCR uses the appraisal's market rent and full underwriting.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.