DSCR + PITIA
The numbers, without the alphabet soup.
A simple explanation of the ratio—and what the ratio does not tell you.
PITIA is a housing-payment estimate.
PITIA combines principal and interest with property taxes, insurance and association dues. Include flood insurance when applicable. Taxes and insurance entered annually must be converted to monthly amounts before being combined with a monthly payment.
DSCR compares rent to that payment.
Educational DSCR = eligible gross monthly rent ÷ estimated monthly PITIA. For example, $3,000 of monthly rent divided by $2,400 of PITIA equals 1.25. This is an arithmetic illustration, not a rate quote or a minimum program requirement.
DSCR is not property profit.
Repairs, vacancy, management, utilities, leasing costs and capital improvements may affect the investment’s economics even when they are not included in the selected DSCR denominator. Keep a separate operating budget. The ratio alone does not establish a good investment.
The payment method matters.
An amortizing payment and an interest-only payment can differ. A lender may use a qualifying payment or income treatment different from your planning assumption. The website’s basic estimate must not override an investor’s current definition.
Missing is not zero.
A missing tax bill, unknown insurance premium or unconfirmed HOA fee is not a known zero expense. The calculator waits for the required inputs. Enter zero only when you know that item does not apply to your planning scenario.
Educational information only. Current lender guidelines, property review, credit, documentation, state availability and underwriting determine eligibility and terms.
Your first step can be a simple one.
Bring the details you know. We’ll help you identify what comes next.