🏦 DSCR Calculator – Debt Service Coverage Ratio
Check whether a property or business generates enough income to comfortably cover its debt payments with the Debt Service Coverage Ratio (DSCR).
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What is DSCR?
The Debt Service Coverage Ratio (DSCR) measures whether a property or business generates enough net operating income to cover its debt payments. Lenders commonly use it to evaluate loan applications for commercial real estate and business financing.
The Formula
DSCR = Net Operating Income ÷ Total Annual Debt Service. A DSCR of 1.0 means income exactly covers debt payments; most lenders look for a DSCR of 1.20 or higher as a cushion against income shortfalls.
Note: This tool is for general educational and planning purposes only and does not constitute lending or investment advice.
Last reviewed August 2026