Free calculator
DSCR calculator.
Debt-service coverage ratio is net operating income divided by annual debt service. Enter both to see how much cushion a deal carries.
The debt-service coverage ratio (DSCR) is net operating income divided by annual debt service: DSCR = NOI ÷ annual debt service. It shows how many times a property's income covers its debt payments; commercial lenders typically want at least 1.25×. Enter NOI and debt service above to calculate DSCR instantly.
Inputs
DSCR = NOI ÷ Annual debt service
Result
Above the typical 1.25× lender minimum
- Net operating income
- $853,494
- Annual debt service
- $612,000
- DSCR
- 1.39×
FAQ
DSCR calculator, explained
What is DSCR?
The debt-service coverage ratio measures how many times a property's net operating income covers its annual debt payments. A DSCR of 1.25× means NOI is 25% above the debt service.
What DSCR do lenders require?
Most commercial lenders look for a minimum around 1.20×–1.25×, though it varies by asset class, loan program, and market conditions.
What counts as debt service?
Annual debt service is the total of principal and interest payments on the loan over a year. Use the fully-amortizing payment, not interest-only, unless the loan is interest-only.
Underwrite the future, instantly.
See how Framecast turns your next data room into an institutional-grade model in a 20-minute live walkthrough.