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DSCR Calculator

Evaluate whether a property's income can cover its debt obligations -- a key metric for commercial lending.

Financing
Beginner

Educational & Informational Purpose Only

This content, data, and mathematical output is provided exclusively for educational purposes and does not constitute formal investment, legal, or tax advice. Real estate investing involves substantial risk of loss. Past performance does not guarantee future results. Always consult with qualified professionals before making financial decisions.

Inputs

$
$

Tip: Annual debt service is the total of all loan payments (principal + interest) for the year. Most lenders require a DSCR of 1.25 or higher.

Results

DSCR Ratio

1.36x

Strong

DSCR Gauge

01.01.252.5+

NOI Excess Over Debt

$20,000

Lender Thresholds

1.25+ : Most lenders will approve
1.0 - 1.25 : May require additional guarantees
Below 1.0 : Property does not cover debt