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DSCR calculator

Calculate your debt service coverage ratio, the number lenders use to judge whether income comfortably covers debt payments. DSCR is annual net operating income divided by annual debt service. Most lenders look for 1.25 or higher.

$240,000
$10KBefore debt payments$5M
$150,000
$5KIncluding the new loan$3M

Debt service coverage

1.60×

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Comfortable for most lenders
Max annual debt at 1.25×
$192K

Many lenders look for 1.25× or higher.

See what fits my cash flow

How is this calculated?

  1. Net operating income = revenue − operating expenses, before debt payments.
  2. Debt service = all principal and interest due in a year.
  3. DSCR = net operating income ÷ debt service.

DSCR = NOI ÷ Debt service

Estimates are good. Offers are better.

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