Real Estate Calculator
DSCR Calculator
Calculate debt service coverage ratio for income-producing property.
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Calculator guide
How this calculator works
How to use this calculator
Enter the annual net operating income and annual debt service. The calculator divides NOI by debt service to estimate DSCR.
Formula used
DSCR = Net Operating Income ÷ Annual Debt Service
Example calculation
If annual NOI is $120,000 and annual debt service is $90,000, DSCR is 1.33.
What the result means
DSCR measures whether a property’s income can cover its debt payments. A ratio above 1.00 means income exceeds debt service, while a ratio below 1.00 signals a shortfall.
Frequently asked questions
What is a good DSCR?
Many lenders prefer DSCR above 1.20 or 1.25, but requirements vary by lender and property type.
Does DSCR use cash flow or NOI?
DSCR usually uses net operating income before debt service.
Can DSCR be below 1?
Yes. A DSCR below 1 means the property does not generate enough NOI to cover annual debt service.