DSCR Calculator

Work out a property's debt service coverage ratio from its net operating income and annual debt service, or reverse the calculation to find the maximum loan payment a property can support for a target DSCR.

Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.

Debt service coverage ratio

Enter an annual debt service greater than zero.

What is a DSCR calculator?

A DSCR calculator tells you whether a property earns enough to cover its loan. Lenders use it to size loans and gauge risk, and investors use it to check a deal will service its debt with room to spare.

How to calculate DSCR

Effective gross income = annual rent × (1 − vacancy)
NOI = effective gross income − operating expenses
DSCR = NOI ÷ annual debt service
Max debt service = NOI ÷ target DSCR

Reading the ratio

Above 1.0, income covers the loan; below 1.0, it does not. Most lenders want a cushion of 1.20 or more. Pair DSCR with the cap rate calculator and the property cash flow calculator to confirm the deal works on paper before you finance it.

Frequently asked questions

What is DSCR?

The debt service coverage ratio is net operating income (NOI) divided by annual debt service. A DSCR of 1.25 means the property generates 1.25 times the income needed to cover its loan payments.

What DSCR do lenders want?

Many commercial and DSCR-loan lenders look for 1.20–1.25 or higher, though requirements vary by lender, property type and market. A ratio below 1.0 means income does not fully cover debt payments.

How much debt can a property support?

Switch to max debt mode and enter a target DSCR. The calculator returns the maximum annual debt service the NOI can support: max debt service = NOI ÷ target DSCR.

Is NOI before or after the mortgage?

NOI is before financing. It is effective rental income minus operating expenses, and the mortgage (debt service) is what you compare it against in the DSCR.

Cap Rate

Compute capitalization rate from NOI and value, or solve for value or NOI.

Cash-on-Cash Return

Measure annual pre-tax cash flow against the cash you actually invested.

Property Cash Flow

Estimate monthly and annual rental cash flow after expenses and mortgage.

Rental Property ROI

Estimate cash flow, cash-on-cash and total ROI for a financed rental, including sale.

Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. DSCR is an estimate. Lender requirements and how they calculate NOI vary — a given DSCR does not guarantee loan approval.