DSCR Calculator

This calculator gives the DSCR for a proposed or existing loan, checks it against the lender's minimum, and works backward to the largest monthly payment and loan amount your income can support at that minimum, using the rate and amortization you enter. It also shows cash flow after debt service and the NOI you would need to just meet the minimum.

It is used for commercial real estate loans, DSCR loans on rental properties, SBA and other business loans — anywhere a lender sizes the loan from income rather than from your personal salary. For personal mortgage qualification, lenders look at your debt-to-income ratio instead.

Get NOI right before anything else: it is rental or business income minus operating expenses (taxes, insurance, repairs, management, vacancy), before mortgage payments, depreciation and income tax. The NOI calculator builds it line by line. Lenders often use their own, more conservative NOI with a vacancy allowance and replacement reserves, so expect their DSCR to be a little lower than yours.

This is the standard coverage ratio used in commercial and business lending. Many residential "DSCR loan" programs for one- to four-unit rentals use a simpler version: gross monthly rent divided by the full housing payment including taxes, insurance and HOA dues (PITIA). Ask which definition your lender uses, because the two give different numbers for the same property.

Lender minimums vary with property type, loan program and market conditions; the table shows how ratios are generally read.

• Borrow less: a larger down payment reduces the payment directly. The calculator's maximum supportable loan shows exactly how much.
• Lengthen the amortization: spreading the loan over 30 years instead of 25 lowers the payment, though you pay more interest overall.
• Lower the rate: buying down the rate or choosing a different product reduces debt service.
• Increase NOI: raise below-market rents at renewal, add income such as parking or laundry, or cut operating costs. Lenders usually want to see the higher income in place, not projected.
• Interest-only period: some loans allow interest-only payments at first, which raises DSCR in the early years, but lenders may still underwrite on the amortizing payment.

DSCR measures safety for the lender; it says nothing about whether the deal is a good return for you. The cap rate calculator compares NOI with the price paid, and the cash-on-cash return calculator compares cash flow after debt service with the cash you invested. A deal can have a comfortable DSCR and still deliver a poor return if you overpaid or put in a large down payment.