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DSCR Calculator

Debt service coverage for rental and commercial loans.

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ⓘ Live results

Results
DSCR
1.321
Verdict
Meets the lender's minimum
Annual debt service
$31,800.00
Maximum payment at the minimum DSCR
$2,800.00
Maximum supportable loan
$410,451.09
Cash flow after debt service
$10,200.00
Break-even NOI
$39,750.00

Quick answer

DSCR = net operating income ÷ annual debt service. Most lenders require 1.20–1.25; below 1.00 the property does not cover its own loan.

DSCR = NOI ÷ annual debt service

How to use the DSCR Calculator

  1. 1Enter net operating income — rent less operating expenses, before the mortgage.
  2. 2Enter the monthly loan payment being proposed.
  3. 3Set the lender's minimum DSCR, usually 1.20 or 1.25.

Worked example

Using the values the calculator loads with:

Inputs

  • Annual net operating income42000 $
  • Monthly loan payment2650 $
  • Lender's minimum DSCR1.25
  • Loan rate7.25 %
  • Amortisation30 yr

Results

  • DSCR1.321
  • VerdictMeets the lender's minimum
  • Annual debt service$31,800.00
  • Maximum payment at the minimum DSCR$2,800.00
  • Maximum supportable loan$410,451.09
  • Cash flow after debt service$10,200.00
  • Break-even NOI$39,750.00

Frequently asked questions

What DSCR do lenders want?

1.25 is the common commercial standard; some rental DSCR loan programmes accept 1.00–1.10 with a higher rate and larger down payment.

Does DSCR include capex?

Conservative lenders subtract a replacement reserve from NOI first. Running the number both ways tells you how much cushion you really have.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.