PropdealcalcDSCR calculator
The debt service coverage ratio compares a property's net operating income with its yearly loan payments. It shows how comfortably the rent covers the debt.
$per year
$
% a year
years
DSCR1.20
Yearly debt service$19,959$1,663 a month
Largest loan at 1.25$240,492
Formula
DSCR = net operating income ÷ yearly debt service, where debt service is the principal and interest paid in a year.
What lenders look for
Below 1.0 the property does not earn enough to pay the loan. Lenders for rental and commercial property commonly ask for 1.2 to 1.25 or more; the exact level differs by lender, country and property type.
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