DSCR Calculator
Divide net operating income by total debt service to find the debt service coverage ratio, how comfortably income covers debt payments.
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Enter net operating income and total debt service to see the DSCR.
Worked example
With these example inputs:
- Net operating income$240,000
- Total debt service$180,000
Debt service coverage ratio: 1.33
- The other way round0.75
- If the first figure were 10% higher1.47
Frequently asked questions
What is the debt service coverage ratio?
DSCR is net operating income divided by total debt service. A ratio of 1.5 means income is 1.5 times the debt payments due over the period.
What DSCR do lenders want?
Many commercial lenders look for a DSCR above 1.25, leaving a cushion above the payments. Below 1.0 means income does not fully cover the debt.