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DSCR Calculator

Calculate your debt service coverage ratio for New Jersey investment properties. See if your rental income covers the mortgage payment.

How DSCR is Calculated

The Debt Service Coverage Ratio (DSCR) measures whether a property's rental income covers its debt obligations:

DSCR = Monthly Rent ÷ PITIA

PITIA = Principal + Interest + Taxes + Insurance + Association dues (HOA)

  • DSCR ≥ 1.25: Strong cash flow — rent exceeds debt service by 25%+
  • DSCR 1.00–1.24: Typical qualifying range — rent covers the payment
  • DSCR < 1.00: Negative cash flow — may need higher down payment