RentToolkit

DSCR Calculator

Debt service coverage ratio for DSCR rental loans.

What do these mean?

Example: $24,000 NOI ÷ $20,000 loan payments = 1.2 DSCR. Income covers the loan 1.2 times.

Your results, explained

DSCR
Debt service coverage ratio: NOI ÷ yearly loan payments. 1.0 means income just covers the loan. Lenders often want more than 1.0; ask yours.
Annual debt service
All loan payments for one year.

Estimates only. Not financial, tax or legal advice.

Results

DSCR—
Annual debt service—

Estimates for educational purposes only. Not legal, tax or financial advice. Results depend on your inputs and are provided as is. See our Terms.

How it works

Lenders use DSCR to decide whether a property’s income covers its loan. Many DSCR loan programs look for 1.0–1.25 or higher; requirements vary by lender.

The formula

DSCR = NOI ÷ annual debt service
Annual debt service = monthly P&I × 12

FAQ

What does a DSCR of 1.0 mean?

The property income exactly covers the loan payment, with nothing left over.

Do lenders include taxes and insurance?

Some lenders compute DSCR on PITIA (including taxes, insurance and HOA). Check your lender’s method.

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