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DSCR at Different Rates Calculator
See your DSCR at every rate from 6% to 8.5% — instantly know which rates hit the 1.0 and 1.25 thresholds that control your LTV and pricing.
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Principal borrowed
Typically 30
Market or lease rent
Annual ÷ 12
Hazard premium ÷ 12
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| Rate | P&I | PITIA | DSCR | Status |
|---|---|---|---|---|
| 6.00% | $1,799 | $2,219 | 1.26 | 1.25+ |
| 6.50% | $1,896 | $2,316 | 1.21 | 1.00+ |
| 7.00% | $1,996 | $2,416 | 1.16 | 1.00+ |
| 7.50% | $2,098 | $2,518 | 1.11 | 1.00+ |
| 8.00% | $2,201 | $2,621 | 1.07 | 1.00+ |
| 8.50% | $2,307 | $2,727 | 1.03 | 1.00+ |
Green rows hit the 1.25 DSCR threshold for best pricing. Yellow rows qualify for broad lender access. Below 1.0 you still have options — but LTV caps tighten and rate add-ons apply.
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Why rate scenarios matter for DSCR deals
DSCR lenders use your interest rate to calculate P&I, which is the largest component of PITIA. A half-point rate difference on a $300,000 loan is roughly $100/month — enough to move DSCR by 0.05–0.08 points depending on your rent and fixed costs. On a deal where you're targeting 1.25 DSCR, that swing is the difference between best-pricing and a rate add-on.
The rate scenarios table shows you, at a glance, whether your deal has cushion. If every rate from 6% to 8.5% produces a 1.25+ DSCR, you can be selective about timing. If only the 6% row clears 1.25 and today's market is at 7.5%, you know you need to adjust your strategy before locking.
The two DSCR thresholds that matter most
Most DSCR lenders use two key thresholds in their pricing matrix:
- 1.25+: Best pricing. Full LTV access. Widest lender pool. No DSCR add-on to rate.
- 1.00–1.24: Mainstream pricing. Broad lender access. LTV up to 80% for strong credit. No or minimal rate add-on.
Below 1.00, you start to see material rate add-ons (typically +0.25 to +0.50%) and LTV caps that tighten to 70–75%. The rate scenarios table color-codes each row to show you which tier each rate produces.
How much does each 0.5% rate move affect DSCR?
On a 30-year $300,000 loan with $2,800/month rent, the approximate DSCR impact per 0.5% rate move:
| Rate | P&I | DSCR (at $700/mo TIHA) |
|---|---|---|
| 6.0% | $1,799 | 1.12 |
| 6.5% | $1,896 | 1.07 |
| 7.0% | $1,996 | 1.03 |
| 7.5% | $2,097 | 0.99 |
| 8.0% | $2,202 | 0.95 |
| 8.5% | $2,308 | 0.91 |
TIHA (taxes + insurance + HOA) assumed at $700/month in this example. Each 0.5% rate increase costs roughly 0.04–0.05 DSCR points on a deal with $2,800/mo rent.
How to use the rate scenario table
- Start with your actual deal numbers. Use the loan amount you plan to borrow, the actual current monthly rent (or market rent from a comparable), and your best estimate of tax and insurance.
- Identify the break-even rate. Find the lowest rate where your DSCR drops below 1.25, then below 1.00. These are your pricing inflection points.
- Check today's market rate. Is it above or below your 1.25 threshold rate? If above, consider whether you can bring the deal to 1.25 via more down payment, I/O structure, or lower purchase price.
- Build in a buffer. Rates between quote and close can move 0.125–0.25%. Run the scenario at today's market rate + 0.25% to see if your DSCR tier holds even in a modest rate rise.
Next steps
- Run the full DSCR Calculator with your specific deal to see PITIA breakdown.
- Use the Rent-to-PITIA Calculator to find the rent needed to hit 1.25 at any rate.
- Get matched with lenders to find the actual rate available on your deal today.