DSCR Calculator
Calculate Debt Service Coverage Ratio to assess whether property income exceeds loan payments by an acceptable margin.
$
Annual NOI after operating expenses but before debt service $
Total principal and interest payments per year Debt Service Coverage Ratio
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NOI ÷ Annual Debt Service
Income Breakdown
Net Operating Income —
Annual Debt Service —
Debt Service Coverage —
Required DSCR 1.25x
Understanding DSCR
The Debt Service Coverage Ratio (DSCR) measures a property's ability to cover its debt payments with operating income. It's a critical metric lenders use to determine how much they are willing to lend.
The Formula
DSCR = NOI ÷ Annual Debt Service
Typical DSCR Requirements
Multifamily (Stabilized) 1.20x – 1.25x
Industrial / Warehouse 1.20x – 1.25x
Retail (NNN) 1.25x – 1.35x
Office (Class A) 1.25x – 1.35x
Office (Class B/C) 1.30x – 1.40x
Hotel 1.35x – 1.50x
Self-Storage 1.25x – 1.35x
What Your Results Mean
- DSCR below 1.00x: The property does not generate enough income to cover debt payments. This is typically not financeable.
- DSCR of 1.00x – 1.20x: Minimal coverage. Lenders may require additional collateral or higher equity.
- DSCR of 1.20x – 1.35x: Acceptable coverage for most stabilized assets. Provides a buffer for income fluctuation.
- DSCR above 1.35x: Strong coverage. May qualify for better loan terms or higher leverage.
Learn more about DSCR in our foundation article: Debt Service Coverage Ratio Explained
Note: DSCR requirements vary by lender, market conditions, tenant quality, and lease terms. These ranges are approximate national averages for conventional lending.