DSCR (Debt Service Coverage Ratio) Calculator
DSCR = NOI / annual debt service. Lenders typically require ≥ 1.20-1.25.
Result
DSCR
1.33
Standard — most lenders OK
- NOI$24,000
- Annual debt$18,000
- DSCR1.333
- Annual cash flow$6,000
Step-by-step
- DSCR = NOI / debt = 24,000 / 18,000 = 1.33.
How to use this calculator
- Enter NOI and annual mortgage P&I.
- Read DSCR.
About this calculator
DSCR measures how comfortably a property's NOI covers its mortgage. DSCR < 1 means the property doesn't generate enough to pay debt (negative cash flow). Lenders for investment properties typically require DSCR ≥ 1.20-1.25; commercial loans may require 1.30-1.40+. Higher DSCR = lower risk for lender.
Frequently asked
DSCR loans (designed for investors): 1.0-1.25 minimum. Standard commercial: 1.25-1.30. Higher leverage or risky property: 1.40+.
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