Debt Coverage Ratio Calculator
Calculate DSCR to determine if a property can support its debt obligations.
DSCR Calculator
Property Income
Taxes, insurance, maintenance, management (not mortgage)
Loan Terms
DSCR Formula
DSCR = NOI / Annual Debt ServiceDebt Service Coverage Ratio
1.41x
Good
Good Coverage
Meets most lender requirements
Cash Flow Analysis
Gross Income$60,000
Effective Income (after vacancy)$57,000
Operating Expenses-$12,000
Net Operating Income$45,000
Annual Debt Service-$31,935
Cash Flow Cushion$13,065
NOI Sensitivity Analysis
| NOI Change | NOI | DSCR |
|---|---|---|
| -20% | $36,000 | 1.13x |
| -10% | $40,500 | 1.27x |
| 0% | $45,000 | 1.41x |
| +10% | $49,500 | 1.55x |
| +20% | $54,000 | 1.69x |
Interest Rate Impact
| Rate | Debt Service | DSCR |
|---|---|---|
| 5% | $25,767 | 1.75x |
| 6% | $28,778 | 1.56x |
| 7% | $31,935 | 1.41x |
| 8% | $35,221 | 1.28x |
| 9% | $38,622 | 1.17x |
| 10% | $42,123 | 1.07x |
Break-Even Analysis
Break-even NOI (DSCR = 1.0)$31,935
Break-even Monthly Rent$3,854
Lender DSCR Requirements
Conventional1.25x min
SBA Loans1.15x min
CMBS1.25x min
Life Insurance1.3x min
Hard Money1x min
Bank Portfolio1.2x min
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