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Real Estate DSCR Calculator

Calculate DSCR for commercial real estate loans. Enter NOI and debt service to find coverage ratio required by lenders for investment property financing.

Use this result well

Inputs that matter
Net Operating Income (NOI), Annual Debt Service
Output to expect
Debt Service Coverage Calculator
  • Check the units and required inputs before comparing results.
  • Keep the assumptions with a copied result so you can reproduce the calculation later.
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Reference & details

How it works

DSCR Formula

Ratio above 1.0 means income exceeds debt payment. Lenders require cushion above 1.0 for approval.

DSCR = Net Operating Income ÷ Annual Debt Service

Annual Debt Service

Sum of principal and interest payments over one year. IO loans use interest-only portion.

ADS = Monthly P&I × 12

Maximum Loan Sizing

Reverse calculate affordable debt service from NOI and lender DSCR floor, then solve for loan amount at given rate/term.

Max ADS = NOI ÷ Minimum DSCR

Updated: July 2026

Example Scenarios

DSCR = 96,000 ÷ 72,000 = 1.33. Exceeds 1.25 lender minimum — loan likely approvable if other criteria met.

NOI approx $32,400 (after expenses), ADS $26,400 → DSCR 1.23. Borderline — may need larger down payment.

Higher rate increases ADS, drops DSCR. Model refi at +2% rate before committing to floating-rate bridge loan.

FAQ

Commercial multifamily: typically 1.20–1.25 minimum. DSCR investor loans on SFR: 1.0–1.25 depending on program. Higher is safer.

Use NOI (after operating expenses) for commercial DSCR. Some DSCR loan programs use gross rent minus limited expense assumptions.

Property does not cover debt from operations — negative cash flow. Lender will deny or require larger down payment to reduce loan amount.

NOI includes taxes and insurance as expenses. Debt service is P&I only — escrows for tax/insurance are not double-counted if in NOI.

IO period uses lower ADS (interest only), improving DSCR temporarily. Model amortizing payment for long-term sustainability.

About Real Estate DSCR Calculator

Determine whether a property generates enough income to cover mortgage payments for commercial and DSCR loan underwriting. Enter net operating income and annual debt service (P&I) to calculate DSCR and compare against lender minimums (typically 1.20–1.25).