DSCR calculator

Work out a property's debt service coverage ratio from its rent or NOI and loan terms, and the largest loan its income supports at the DSCR a lender requires.

By the Calcist team · Checked against known answers · Updated October 28, 2026

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Estimates for planning, not financial, tax or legal advice. Figures use US rules unless the page says otherwise.

Next: See the cash you keep after the loan with the cash on cash return calculator.

What this calculator does

Lenders on rental and commercial property want to know whether the property's income covers its loan payments. The debt service coverage ratio (DSCR) answers that: NOI divided by total debt service. A DSCR of 1.00 means the income just covers the payments; above 1 leaves a cushion. This page also turns a lender's minimum DSCR into the maximum loan.

How it's calculated

NOI = rent × 12 × (1 − vacancy %) − operating expenses
Debt service = monthly payment × 12
DSCR = NOI ÷ debt service
Maximum payment = NOI ÷ target DSCR ÷ 12
Maximum loan = payment × (1 − (1 + i)⁻ⁿ) ÷ i (amortizing) or payment ÷ i (interest-only)

Worked example

Rent is $4,000 a month. With 5% vacancy and $12,000 of expenses, NOI is 48,000 × 0.95 − 12,000 = $33,600. A $300,000 loan at 7.5% over 30 years costs $2,097.64 a month, or $25,171.68 a year.

DSCR = 33,600 ÷ 25,171.68 = 1.33
Maximum payment at 1.25 = 33,600 ÷ 1.25 ÷ 12 = $2,240 → maximum loan ≈ $320,359

With interest-only payments the same income supports about $358,400, because none of the payment goes to principal.

Limitations

Lenders work out their own NOI, which may differ from yours, so their DSCR may too.
Lenders differ in what they count as income and as debt service. Ask exactly how a lender figures the ratio.
A loan amount is also limited by loan-to-value, credit and reserves, not just DSCR.

Sources

How we checked this

Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:

$33,600 NOI, $300,000 at 7.5%: DSCR 1.33 ✓
Same: max loan at 1.25 is $320,359 ✓
Interest-only: DSCR 1.49, max loan $358,400 ✓
Low rent: DSCR 0.58, fails 1.25 ✓
NOI entered directly: $40,000 gives 1.59 ✓
No loan: no debt to cover ✓

Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.

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Questions people ask

How do you calculate DSCR?

Divide net operating income by the year's loan payments (principal and interest). $33,600 NOI ÷ $25,171.68 of debt service = 1.33.

What is a DSCR loan?

A loan for investment property that the lender qualifies mainly on the property's income covering the payment, rather than mostly on your personal income. Terms, minimum DSCRs and how the ratio is figured vary by lender.

What DSCR do lenders require?

Each lender sets its own minimum. 1.25 is used here only as an example; enter the figure a lender quotes you to see the largest loan it would allow.

How do I find a DSCR lender near me?

Ask several lenders that make investment property loans for written quotes, and compare the rate, points, prepayment penalty and minimum DSCR. Run each quote through this calculator.

What does a DSCR below 1 mean?

The property's income doesn't cover the loan payments, so the owner must make up the shortfall. Most lenders won't lend on that basis.

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