DSCR Calculator
Calculate Debt Service Coverage Ratio. Determine if property income covers mortgage payments for lending qualification.
Debt Service Coverage Ratio (DSCR) measures whether a property's income can cover its debt payments. Lenders use DSCR to evaluate loan applications and determine lending terms.
Calculator
Common use cases
- Loan qualification
- Investment property analysis
- Refinancing evaluation
- Commercial real estate lending
How to use
- Enter property net operating income
- Input annual debt service (mortgage payments)
- View DSCR and lending assessment
FAQ
What DSCR do lenders require?
Most require 1.20-1.25 minimum. DSCR loans for investors often require 1.0-1.25 depending on other factors.
How is annual debt service calculated?
Total annual mortgage payments including principal and interest. Some lenders include property taxes and insurance.
Can I get a loan with DSCR below 1.0?
It's difficult. Some DSCR loan programs allow it with compensating factors like lower LTV or higher reserves.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.