DSCR (Debt Service Coverage Ratio) Calculator

DSCR = NOI / annual debt service. Lenders typically require ≥ 1.20-1.25.

Inputs

Annual mortgage P&I.

Result

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General calculation reads

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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

What DSCR do lenders require?+
DSCR loans (designed for investors): 1.0-1.25 minimum. Standard commercial: 1.25-1.30. Higher leverage or risky property: 1.40+.
How to improve DSCR?+
Increase NOI (raise rents, cut expenses) or reduce debt (larger down payment, longer amortization).
Annual or monthly debt?+
Use annual to match annual NOI. (Monthly P&I × 12.)
Does DSCR include taxes?+
Property taxes are in NOI (operating expense). Federal income tax is separate from DSCR.
DSCR loans?+
A loan product where lender qualifies you on the property's DSCR rather than your personal income — popular for investors.

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