🏦 Debt Service Coverage Ratio Calculator
Calculate the Debt Service Coverage Ratio (DSCR) to see if net operating income comfortably covers debt payments, a key metric for lenders.
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What is the Debt Service Coverage Ratio?
The Debt Service Coverage Ratio (DSCR) measures whether a property or business generates enough income to cover its debt payments. Lenders commonly use it to evaluate commercial real estate loans and business financing.
The formula
DSCR = Net Operating Income / Total Debt Service (annual principal and interest payments). A DSCR of 1.0 means income exactly covers debt payments; most lenders look for a ratio of 1.25 or higher as a comfortable safety margin.
This calculator is for general financial education and planning purposes, not a lending decision.
Last reviewed August 2026