Calculator
Vacation Rental DSCR Calculator
TL;DR
DSCR is the monthly rental income a lender counts divided by the full monthly payment: principal, interest, taxes, insurance and HOA dues. Enter your own figures and the rate from your quote below to see your ratio and what it means. Run it once for each income method a program might use.
Your DSCR
Enter the monthly income, loan amount and the rate from your quote to see your ratio.
How the calculation works
The calculator finds the monthly principal and interest for a fully amortizing loan from the amount, rate and term you enter. It adds one twelfth of your annual property taxes and insurance, plus your monthly HOA and resort dues, to get the full payment. Your DSCR is the monthly income divided by that payment. A home earning $5,200 a month against a $4,000 payment has a DSCR of 1.30.
Which income figure should I use?
Use the figure a program would count. For an operating home, that is often a full year of booking income averaged by month. For a new listing, it may be a market-data estimate. Some programs use only long-term market rent. Try each one; the spread tells you how much the choice of program matters. Our guide on how lenders count Airbnb income explains the methods.
What the DSCR leaves out
Lenders calculate DSCR on the loan payment and fixed housing costs. Vacation rentals also carry cleaning, management, utilities, supplies and platform fees. A ratio that clears a program’s minimum can still leave thin cash flow, so model those costs separately.
Ready to compare programs?
If your numbers look workable, send us the scenario. We confirm the parcel questions, then compare short-term-rental-friendly wholesale programs and show you how each one reads your income.