DSCR Calculator
How to calculate DSCR
Our debt service coverage ratio calculator uses the following formula:
Minimum acceptable DSCR
Most lenders want a minimum ratio of 1:1, but some will do no ratio. No ratio means that they do not care if the gross rental income is greater than the total housing payment.
If your property doesn't ratio, it is riskier to the bank, so the interest rate and upfront fees will be higher. The better the ratio, the better the terms your property will qualify for.
What is a 1.25 DSCR?
A 1.25 DSCR means that the income from your property will be able to cover the total debt service related to your property and have enough left over for an income for you.
1:1 exactly represents the amount needed to cover the loan, while 0.50 represents the amount that is left over.
For example, if your total housing payment (PITIA) is $1,000 and your gross monthly income is $1,250, your DSCR would be 1.25.
STEP 1
Apply Online or Call Directly
Find out how much home you can buy or discover how much you can save by refinancing.
STEP 2
Review What Options You Can Qualify For
Learn exactly how much you qualify for and what you would save by working with Pioneer Mortgage Funding.
STEP 3
Get Loan Approval in 24 Hours
Get mortgage loan approval to move forward with your property.
About Us
We know how important and invasive the mortgage process can be. We appreciate that you’re considering entrusting us with one of the most important financial decisions of your life.
License
Contact
828-639-8369
© 2025 Pioneer Mortgage Funding
