What is DSCR?
The Debt Service Coverage Ratio (DSCR) measures whether a business or property generates enough net operating income to cover its debt obligations, and is a key metric lenders use when underwriting loans.
The formula
DSCR = Net Operating Income / Total Debt Service. A DSCR of 1.0 means income exactly covers debt payments; lenders typically require a DSCR comfortably above 1.0 (often 1.2 to 1.5 or higher) to approve financing.
This calculator is for general financial-planning education, not lending advice.
Last reviewed August 2026