DSCR Calculator

Use this tool to calculate your property's Debt Service Coverage Ratio (DSCR), which shows how well your property's income covers its debt obligations.

How to Use This DSCR Calculator

Enter Your Income Details: Provide your property’s Gross Rental Income (the total annual rent) and any Other Income (extra income from fees, parking, etc.).
Input Your Expenses: Enter the Operating Expenses for managing the property (maintenance, taxes, insurance, etc.).
Enter Debt Service: Input the Annual Debt Service – the total annual amount you pay for your mortgage or loans (principal and interest).
Calculate DSCR: Click the Calculate button. The tool will first compute your Net Operating Income (NOI) and then divide it by your Annual Debt Service.
Review the Results: The calculator will show:
- NOI: Your net income after expenses.
- DSCR: The ratio indicating how many times your NOI covers the debt payments.
- Interpretation: A note explaining what your DSCR number means (e.g., DSCR greater than 1 means a healthy cushion, while lower than 1 indicates risk).
Reset If Needed: If you want to test new numbers, click the Reset button to clear the form.

Gross Rental Income (annual, in $)

Other Income (annual, in $)

Operating Expenses (annual, in $)

Annual Debt Service (in $)

DSCR Summary

Net Operating Income (NOI)

$0.00

Debt Service Coverage Ratio (DSCR)

0.00

Interpretation

Understanding DSCR

The Debt Service Coverage Ratio (DSCR) shows whether a property's net income is sufficient to cover its debt payments. It is calculated by first finding the Net Operating Income (NOI):

NOI = (Gross Rental Income + Other Income) – Operating Expenses

Then, DSCR is computed as:

DSCR = NOI ÷ Annual Debt Service

A DSCR greater than 1 means the property earns more than enough to pay its debt. A DSCR equal to 1 indicates that income exactly covers debt, while a DSCR below 1 suggests the property may not generate enough income, which can be risky for lenders.

DSCR Calculator Disclaimer

This calculator is for informational purposes only and provides approximate calculations. Property performance and DSCR results may vary due to a number of factors. Always consult with a qualified professional before making any investment decisions.

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Financial Disclaimer

The information provided on this website is for educational purposes only and should not be considered financial, investment, or legal advice. Consult with a professional before making any decisions.