DSCR Calculator

Use this free DSCR calculator to make better property management decisions. Enter your values below to get instant results.

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How to Use This Calculator

1 Enter annual Net Operating Income (NOI)
2 Enter annual debt service (total mortgage payments)
3 Click Calculate to see the DSCR ratio
4 Compare to lender minimums (typically 1.20-1.25)
5 DSCR above 1.0 means income covers debt payments

Example Calculation

Property with $60,000 NOI and $48,000 annual mortgage

Inputs:

NOI: $60,000/year
Debt Service: $48,000/year

Result:

DSCR = $60,000 ÷ $48,000 = 1.25 — Meets typical lender requirements

Important Considerations

• DSCR loans (investment property loans) use property income, not personal
• Variable rate mortgages require stress-testing at higher rates
• Interest-only periods affect DSCR calculations temporarily

Frequently Asked Questions

Most commercial lenders require DSCR of 1.20-1.25 minimum. This means NOI must be 20-25% higher than debt payments. Some lenders accept 1.10-1.15 with other compensating factors like strong credit or low LTV.

DSCR below 1.0 means the property doesn't generate enough income to cover debt payments—you'd need to contribute personal funds. Lenders won't finance such properties, and investors should avoid them unless significant value-add potential exists.

Increase NOI by raising rents or reducing expenses. Alternatively, reduce debt service by making a larger down payment, getting a longer loan term, or finding a lower interest rate. Even small NOI improvements can significantly impact DSCR.

They're the same thing. DSCR (Debt Service Coverage Ratio) and DCR (Debt Coverage Ratio) are used interchangeably. Both measure how many times NOI covers annual debt payments.