Tools you might need next
Calculate gross rent multiplier to compare income property values and rental yields. Free GRM calculator for real estate investors and rental property analysis.
Find minimum occupancy rate to cover operating expenses and debt service. Free break-even occupancy calculator for multifamily and commercial property analysis.
Project property value growth from annual appreciation rate and holding period. Free property appreciation calculator for real estate investment and equity.
Ratio above 1.0 means income exceeds debt payment. Lenders require cushion above 1.0 for approval.
DSCR = Net Operating Income ÷ Annual Debt ServiceSum of principal and interest payments over one year. IO loans use interest-only portion.
ADS = Monthly P&I × 12Reverse calculate affordable debt service from NOI and lender DSCR floor, then solve for loan amount at given rate/term.
Max ADS = NOI ÷ Minimum DSCRUpdated: July 2026
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.
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).