Learn how DSCR is calculated—gross rent divided by PITIA—with a step-by-step walkthrough for Indiana investment properties.
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How Is DSCR Calculated?
One formula drives most investor loan decisions: gross monthly rent divided by total PITIA. Here is exactly how lenders build that number on Indiana rentals.
DSCR = Gross Monthly Rent ÷ Total Monthly PITIA. PITIA is principal, interest, taxes, insurance, and HOA when the property has dues.
Lenders care about coverage — whether the asset pays for itself — not your personal W-2 income. A clean calculation with the right rent source and full PITIA is what clears underwriting.
Guidelines vary by investor. We confirm the final ratio against live program rules before you rely on a pre-approval.
Worked example
Follow the same order underwriters use so your estimate matches the file.
Small input errors swing the ratio enough to miss investor minimums.
Related DSCR guides and investor resources from Ryan & Steve.
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Ryan & Steve will build the ratio with real taxes, insurance, and rent docs — or start with the calculator.