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DSCR calculator
Check how much operating income covers scheduled loan payments. Use annual NOI and annual principal plus interest for the same period.
Income after operating expenses, before loan payments and income taxes.
Total scheduled principal and interest for all loans, using the same year as NOI.
Debt service coverage
Include every loan in debt service. Lenders may adjust NOI, reserves and payments, so their underwriting ratio can differ.
Example amounts are prefilled. Change any field to see your result instantly. Your financial inputs stay in this browser.
Estimate debt service from loan terms
Optional fixed-rate, fully amortizing loan estimate. Payments are monthly. Excludes fees, balloons and interest-only periods.
Estimated annual debt service: $431,676.38
How to calculate debt service coverage
Debt service coverage ratio (DSCR) compares annual NOI with the scheduled principal and interest payments on the property debt. A 1.00x ratio means income exactly covers those payments. Below 1.00x, NOI alone does not cover debt service.
DSCR = annual NOI / annual debt service
Worked example
With $600,000 of annual NOI and $400,000 of annual debt service, DSCR is $600,000 / $400,000 = 1.50x. That leaves $200,000 before other cash needs.
Frequently asked questions
What does a DSCR of 1.50x mean?
The property generates $1.50 of NOI for every $1.00 of scheduled debt service. This is a coverage measure, not a forecast of investor distributions.
What if there is no debt service?
With no scheduled debt service, DSCR is not applicable. This calculator asks for a positive debt service amount rather than displaying an infinite ratio.
Can I estimate debt service from loan terms?
Yes. The optional payment estimate uses monthly payments on a fully amortizing, fixed-rate loan. It excludes fees, balloon payments, interest-only periods and changes in rate.
See how the full model works in our engine methodology or review a worked property example.