Calculate Debt Service Coverage Ratio for real estate investments and commercial loans. Determine if your property income covers debt payments.
DSCR Calculator
Calculate Debt Service Coverage Ratio for real estate investments and commercial loans. Determine if your property income covers debt payments.
Property & Loan Details
Annual rental income minus operating expenses
DSCR Results
DSCR Requirements by Loan Type
| Loan Type | Min DSCR | Preferred DSCR | Notes |
|---|---|---|---|
| Conventional | 1.20x | 1.25x+ | Standard commercial loans |
| SBA 504 | 1.15x | 1.25x+ | Owner-occupied properties |
| DSCR Loan (Investor) | 1.00x | 1.25x+ | No income verification |
| CMBS | 1.25x | 1.35x+ | Large commercial properties |
| Bridge Loan | 1.00x | 1.10x+ | Short-term financing |
Frequently Asked Questions
What is DSCR?
DSCR (Debt Service Coverage Ratio) measures a property's ability to cover its debt payments.
It's calculated as Net Operating Income divided by Annual Debt Service.
What is a good DSCR?
Most lenders require a minimum DSCR of 1.20-1.25x.
A DSCR of 1.25x means the property generates 25% more income than needed to cover debt payments.
How is DSCR used in lending?
Lenders use DSCR to assess loan risk.
Higher DSCR indicates lower risk.
DSCR loans for investors often require 1.0-1.25x minimum.
About This Page
Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
We maintain this page to improve clarity, accuracy, and usability. If you see an issue, please contact hello@supercalc.dev.
Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.