Debt Service Coverage Ratio (DSCR) Calculator

Your details

Choose whether to build net operating income from individual items or enter a known NOI.
Total scheduled annual rent at 100% occupancy, before any deductions.
Parking, laundry, storage, or other ancillary revenue per year.
Expected percentage of gross income lost to vacancies and uncollected rent.
%
All operating costs: property tax, insurance, management, maintenance, utilities. Exclude mortgage payments.
Total principal borrowed (not the property value).
Annual interest rate on the loan, used to calculate monthly payments.
%
Number of years over which the loan amortises.
years
The minimum DSCR your lender requires. Most commercial lenders use 1.20 to 1.30.
Currency
DSCRStrong coverage
1.52x

Net Operating Income divided by Annual Debt Service.

Net Operating Income$86,000
Annual Debt Service$56,717
NOI Cushion$15,103
Minimum NOI Required$70,897
Maximum Loan at Threshold$849,122
Monthly Payment$4,726.45
1.52 x
Below breakeven<1Weak / Marginal1-1.25Adequate1.25-1.5Strong1.5+

DSCR 1.52x - Strong debt coverage.

  • Your DSCR of 1.52x exceeds the 1.25x lender threshold, so the property covers its debt with a margin to spare.
  • Your NOI is 15103 above the minimum required for this loan at the 1.25x threshold.
  • Given your NOI and the 1.25x threshold, the maximum supportable loan at this rate and term is approximately 849122.
  • Your NOI covers 152% of your annual debt service, meaning -52% of each dollar of debt payments is the buffer (or deficit) you carry.

Next stepA DSCR well above 1.25x improves your negotiating position for better loan terms, lower rates, or a higher LTV.

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