DSCR Calculator
DSCR from NOI
Calculate DSCR from net operating income and annual debt service
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DSCR from Property Details
Calculate DSCR from rent, expenses, and mortgage details
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Formula
DSCR = Annual Net Operating Income / Annual Debt Service
Frequently Asked Questions
What is DSCR?
Debt Service Coverage Ratio (DSCR) measures a property's ability to cover its debt payments from operating income. DSCR = Net Operating Income / Annual Debt Service. A DSCR of 1.25 means the property earns 25% more than needed to cover the mortgage.
What DSCR do lenders require?
Most lenders require a minimum DSCR of 1.20-1.25 for investment property loans. Some DSCR loan programs accept 1.0 (break-even). Higher DSCR (1.5+) may qualify you for better rates and terms.
What is a DSCR loan?
A DSCR loan is an investment property mortgage that qualifies you based on the property's rental income (DSCR) rather than your personal income. This is popular with investors who have complex tax returns or multiple properties.
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