DSCR Guide
How Is DSCR Calculated?
One formula drives most investor loan decisions: gross monthly rent divided by total PITIA. Here is exactly how lenders build that number on Indiana rentals.
The DSCR Formula
DSCR = Gross Monthly Rent ÷ Total Monthly PITIA. PITIA is principal, interest, taxes, insurance, and HOA when the property has dues.
Lenders care about coverage — whether the asset pays for itself — not your personal W-2 income. A clean calculation with the right rent source and full PITIA is what clears underwriting.
Guidelines vary by investor. We confirm the final ratio against live program rules before you rely on a pre-approval.
Worked example
Gross rent$2,200
P&I$1,420
Taxes + insurance$410
HOA$70
Total PITIA$1,900
DSCR1.16x
Step-by-Step Calculation
Follow the same order underwriters use so your estimate matches the file.
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Common Calculation Mistakes
Small input errors swing the ratio enough to miss investor minimums.
Keep Exploring
Related DSCR guides and investor resources from Ryan & Steve.
What Does DSCR Mean?
What Debt Service Coverage Ratio stands for and how lenders interpret it.
What DSCR Ratio Is Required?
Typical minimum ratios and when sub-1.0 programs may apply.
DSCR Calculator
Run rent-vs-payment numbers before you write an offer.
DSCR Loans Overview
Full program hub with benefits, eligibility, and next steps.
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Frequently Asked Questions
What rent number do lenders use?
Programs may use an in-place lease, appraisal market rent, or documented short-term rental history. The allowed rent source depends on the investor and property type.
Does PITIA include HOA?
Yes when the property has HOA dues. Taxes and insurance must also reflect the subject property — not a generic estimate.
Can I run my own DSCR before applying?
Yes. Use our DSCR calculator with estimated rent and payment, then we refine the ratio with appraisal, tax, and insurance figures from your file.
Want Us to Run Your Exact DSCR?
Ryan & Steve will build the ratio with real taxes, insurance, and rent docs — or start with the calculator.