Skip to main content

Debt Service Coverage Ratio (DSCR) Calculator

NOI divided by total debt service

Instructions

Enter NOI and total annual debt service. Click Calculate to get DSCR.

Formula

DSCR = Net Operating Income / Total Debt Service

About DSCR

DSCR indicates the ability to cover debt obligations with operating income. Values above 1.0 mean coverage is sufficient.

Common Questions

What DSCR do lenders prefer?

Common thresholds are 1.20× or higher, depending on risk and asset type.