Debt Service Coverage Ratio (DSCR) Calculator

Real Estate Tools

Calculate the debt service coverage ratio to determine if rental income can cover debt servicing. A key lender metric for real estate financing and investment analysis.

Calculate DSCR

Enter property income, expenses, and debt details for accurate DSCR calculation

Annual Gross Rental Income ($)

Vacancy Rate (%)

Annual Operating Expenses ($)

Maintenance, property management, taxes, insurance

Annual Debt Service ($)

Mortgage principal + interest payments

DSCR Formula

DSCR = NOI ÷ Annual Debt Service

NOI = Effective Gross Income - Operating Expenses

Effective Gross Income = Gross Income × (1 - Vacancy Rate)

DSCR Standards

1.25+: Excellent - Strong qualification

1.0-1.25: Adequate - May qualify

1.0: Insufficient - May not qualify

Lenders typically require: 1.25 minimum

Why Comprehensive Data Matters

Includes vacancy allowances

All expense types: Maintenance, management, taxes

Accurate NOI calculation: Essential for lenders

Avoids misleading results: Common in basic calculators