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DSCR Calculation Explained: Formulas, Tools, and Step-by-Step Guide for Investors
Last Updated: June 25, 2025
What Is DSCR Calculation?
DSCR calculation uses a clear formula for rental property loans. DSCR calculation equals Rent divided by PITIA. PITIA stands for Principal, Interest, Taxes, Insurance, and Association Dues. This method links actual rent income to all fixed property outflows. DSCR calculation shows how much cash flow from rent covers those required monthly payments.
Another formula for DSCR calculation uses Net Operating Income (NOI) divided by Total Debt Service. In this version of DSCR calculation, NOI equals Rent minus Property Management, Maintenance, Taxes, and Insurance. Total Debt Service totals Principal and Interest only. This formula often appears in commercial real estate analysis, though most rental property underwriting uses the rent/PITIA formula for DSCR calculation.
DSCR calculation relies on inputs such as:
