By Brandon Sooknanan, Founder of StatementReady
On a DSCR loan file, the property's rent is compared to its housing payment instead of using the borrower's personal income from bank statements. Lender definitions of rent and of what counts in the payment can vary, so treat published matrices as background and the lender's own matrix as the rule for the file you are building.
The formula
DSCR = monthly gross rent ÷ monthly PITIA, rounded to two decimals. If you turn on an optional vacancy or expense factor, rent is first multiplied by (100% − the factor you enter). The free calculator sets no factor and no minimum ratio.
What goes into PITIA
From the DSCR calculator page:
- Principal and interest (typed, or from loan amount, rate, and term)
- Property tax (monthly)
- Homeowners insurance (monthly), plus flood insurance where the property has it
- HOA or condo dues (monthly)
Blank fields count as $0. Ask the lender what PITIA includes for the specific loan.
What the calculator shows
DSCR; monthly PITIA; monthly cash flow (rent − PITIA); optional rent needed for a target DSCR (= target × PITIA).
Worked example (page numbers only)
- Loan $300,000 at 6% for 30 years → P&I $1,798.65
- Property tax $300 + homeowners insurance $100 → PITIA $2,198.65
- Monthly rent $2,500 → DSCR 1.14; cash flow $301.35
- Target 1.25 → rent needed $2,748.31
Round numbers for illustration only, not a rate quote or a limit.
Sourced definitions (quoted)
Windsor Mortgage DSCR Plus Program matrix (effective 02/24/2026): "Gross Rent/PITIA (P&I), Gross Rent/ITIA (Interest Only)."
EMM Non-QM DSCR Matrix (dated 6/09/2026): DSCR = Gross monthly rental income ÷ Qualifying Payment (PITIA / ITIA) — "Qualifying Payment" appears inside that quotation only.
Background on amortization: CFPB, How do mortgage lenders calculate monthly payments?.
What it doesn't do
- No lending decision and no minimum DSCR, vacancy, or rent rule
- "Rent needed" is only target × PITIA
- No interest-only payment calc (enter that payment as P&I if the lender asks)
- Runs in the browser; what you type isn't sent or stored
DSCR vs bank statement loans
A bank statement loan works income from deposits. DSCR looks at rent vs housing payment. The same broker may see both on different properties. Related free tools: bank statement income calculator, mortgage DTI calculator, all free tools.
When you're ready to work from the real statements, StatementReady checks whether each statement's transactions add up to its printed balances. It assists review of loan files; the lender makes all underwriting decisions.
Not legal or tax advice. StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.
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