DSCR Calculator
Debt service coverage for rental and commercial loans.
Enter your values
Enter the annual net operating income in $.
Enter the monthly loan payment in $.
Enter the lender's minimum dscr you are working with.
Enter the loan rate in %.
Enter the amortisation in yr.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- DSCR
- 1.321
- Verdict
- Meets the lender's minimum
- Annual debt service
- $31,800.00
- Maximum payment at the minimum DSCR
- $2,800.00
- Maximum supportable loan
- $410,451.09
- Cash flow after debt service
- $10,200.00
- Break-even NOI
- $39,750.00
Quick answer
DSCR = net operating income ÷ annual debt service. Most lenders require 1.20–1.25; below 1.00 the property does not cover its own loan.
DSCR = NOI ÷ annual debt service
At a glance
| What it does | Debt service coverage for rental and commercial loans. |
|---|---|
| Category | Business |
| Inputs needed | Annual net operating income, Monthly loan payment, Lender's minimum DSCR, Loan rate, Amortisation |
| Main output | DSCR |
| Formula | DSCR = NOI ÷ annual debt service |
| Cost | Free — no sign-up, no download |
How to use the DSCR Calculator
- 1Enter net operating income — rent less operating expenses, before the mortgage.
- 2Enter the monthly loan payment being proposed.
- 3Set the lender's minimum DSCR, usually 1.20 or 1.25.
Inputs explained
- Annual net operating income($)
- Enter the annual net operating income in $.
- Monthly loan payment($)
- Enter the monthly loan payment in $.
- Lender's minimum DSCR
- Enter the lender's minimum dscr you are working with.
- Loan rate(%)
- Enter the loan rate in %.
- Amortisation(yr)
- Enter the amortisation in yr.
Worked example
Using the values the calculator loads with:
Inputs
- Annual net operating income42000 $
- Monthly loan payment2650 $
- Lender's minimum DSCR1.25
- Loan rate7.25 %
- Amortisation30 yr
Results
- DSCR1.321
- VerdictMeets the lender's minimum
- Annual debt service$31,800.00
- Maximum payment at the minimum DSCR$2,800.00
- Maximum supportable loan$410,451.09
- Cash flow after debt service$10,200.00
- Break-even NOI$39,750.00
Frequently asked questions
What DSCR do lenders want?
1.25 is the common commercial standard; some rental DSCR loan programmes accept 1.00–1.10 with a higher rate and larger down payment.
Does DSCR include capex?
Conservative lenders subtract a replacement reserve from NOI first. Running the number both ways tells you how much cushion you really have.
What do I need to enter into the DSCR Calculator?
Just 5 values: annual net operating income, monthly loan payment, lender's minimum dscr, loan rate, amortisation. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the DSCR Calculator work out the answer?
DSCR = net operating income ÷ annual debt service. Most lenders require 1.20–1.25; below 1.00 the property does not cover its own loan. It applies the formula DSCR = NOI ÷ annual debt service and shows the working so you can check each step by hand.
Is the DSCR Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.