DSCR Calculator
Find out if a property's income can cover its debt payments — the key metric for DSCR loan qualification.
Your Numbers
Results
Annual Effective Income
$22,800
Gross rent minus vacancy
Net Operating Income
$16,800/yr
Income minus operating expenses
Annual Debt Service
$14,400/yr
Monthly mortgage x 12
DSCR
1.17
Marginal — some lenders accept
Formula
DSCR = Net Operating Income / Annual Debt Service
Annual debt service is your total annual mortgage payments (principal + interest). NOI does not include mortgage payments — it's income minus operating expenses only.
What is it
What is DSCR?
The Debt Service Coverage Ratio (DSCR) measures whether a property's income can cover its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than needed to pay the mortgage.
Why it matters
Why it matters
DSCR is the primary metric lenders use to qualify DSCR loans. Unlike conventional loans that rely on your personal income, DSCR loans qualify based on the property's ability to pay for itself. A strong DSCR also means better cash flow cushion for you.
Benchmarks
What's a good dscr?
Most DSCR lenders require a minimum of 1.0-1.25. A DSCR of 1.25+ gets you the best rates. Below 1.0 means the property can't cover its own mortgage — most lenders won't touch it, and neither should you.
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