DSCR Calculator
Work out the debt service coverage ratio (DSCR) for a rental property or business loan.
About the DSCR Calculator
Enter the yearly net operating income, then either the yearly loan payments or the loan's amount, rate and term. The calculator gives the DSCR, the cash left after payments and, when you enter a loan, the largest loan a 1.25× lender limit would allow.
DSCR measures how comfortably income covers loan payments. Commercial and DSCR mortgage lenders usually want at least 1.20–1.25×; below 1.0 the property loses money before any vacancy.
The formula
DSCR = net operating income ÷ annual debt service
Worked example
Net operating income 120,000; loan payments 90,000 a year
- DSCR = 120,000 ÷ 90,000 = 1.33×
- 30,000 a year left after payments
- Above the 1.20–1.25× most lenders require
Questions people ask
What's NOI?
Income minus operating expenses (taxes, insurance, maintenance, management), before mortgage payments.
Is 1.0 enough?
It means break-even; lenders want a cushion.
How do I raise my DSCR?
Raise rents, cut operating costs, put more money down, or take a longer term to lower payments.