Tool rent ÷ housing cost
DSCR calculator
Rent against principal, interest, county taxes, insurance and HOA dues — with a plain-English read on what the ratio means for a California property. The rate field is blank on purpose.
Property and loan inputs
Coverage
Enter rent, loan amount and a rate to see the coverage ratio.
Rent, loan amount and the interest rate you were offered are the three inputs the ratio needs. Taxes, insurance and HOA dues then complete the housing cost it is measured against. Nothing is pre-filled, because the rate on your file is not ours to assume.
Reading what the number means
Four bands, and what each one tells you
These are working bands, not any lender’s official program minimums. Actual floors differ by lender, loan size, property type and how the rent is documented — which is why the calculator describes the shape of the file rather than declaring it approved.
A ratio under 1.00 means the rent does not cover the housing cost at all. Between 1.00 and 1.19 the property covers, with almost no cushion. Between 1.20 and 1.34 the property covers with a working margin. Above 1.35 the property carries itself with real room, which is what absorbs a reassessment or an insurance renewal without breaking the loan.
What the calculator does not include
Vacancy, management, maintenance and capital reserves sit outside the coverage ratio because underwriting does not deduct them. They still decide whether the investment works. The cash-flow line accounts for whatever set-aside you enter, so use a number you would actually budget rather than a round figure.
Why the rate is blank
We publish no rates. A rate depends on the property, the loan amount, the entity, the reserves and the lender, and an example rate on a website is a marketing number, not a quote. Type the rate from the quote you are working with and the arithmetic is the same arithmetic underwriting uses.
California inputs worth getting right
- Taxes: use the county bill for the parcel at the assessed value you will pay, not the seller’s current bill.
- Insurance: use a quote for this address and this use. Wildfire, flood and older construction all change it.
- HOA: include monthly dues and any special assessment being collected.
- Loan amount: the new loan, not the purchase price — the down payment is the difference.
If the number comes up short, the levers are the loan amount, the property or the structure. The tax and insurance guide covers the two lines that most often explain the gap.
Want a second read on the ratio?
Send the same numbers and we will run them against the programs we can shop — including the ones that read rent documentation or reserves differently.
Business-purpose loans for non-owner-occupied investment property only; not for personal, family or household use. Not a commitment to lend. All loans subject to underwriting and lender/investor approval; terms subject to change.