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.
Specialist tool for Real Estate Analysis1 documented formulaFocused single-task workflowPrivate in your browser
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A quick decision brief for this specific tool
Inputs that matter
Net Operating Income (NOI), Annual Debt Service
Output to expect
Debt Service Coverage Calculator
How it works
1 documented formula across 1 calculation mode
- Confirm that every value uses the unit and time basis shown before comparing scenarios.
- Change one input at a time to see which assumption materially changes the result.
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Reference & details
How it works
Updated July 2026
How it works
Updated July 2026DSCR Formula
Ratio above 1.0 means income exceeds debt payment. Lenders require cushion above 1.0 for approval.
DSCR = Net Operating Income ÷ Annual Debt ServiceAnnual Debt Service
Sum of principal and interest payments over one year. IO loans use interest-only portion.
ADS = Monthly P&I × 12Maximum 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 DSCRUpdated: 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).