DSCR Loan Calculator
Calculate Debt Service Coverage Ratio (DSCR) for rental property loans. Reverse-calculate required NOI, required rent, or loan debt service using lender-oriented DSCR benchmarks.
Calculator Mode
Inputs
Net Operating Income (before debt service)
Total annual principal + interest payments
Results
DSCR
1.25
Annual Debt Service
$19,200
$1,600/mo
DSCR Interpretation
Lender requirements vary. This calculator does not represent or imply any lender's actual requirements. Verify with your lender.
Formula
DSCR = Annual NOI ÷ Annual Debt Service
For rental property loans, lenders often use DSCR to test whether the property's net operating income can cover the proposed mortgage payment. This DSCR loan calculator helps compare NOI, debt service, required rent, and target coverage before you speak with a lender.
Worked Example
Annual NOI = $24,000 | Mortgage payment = $1,600/mo → Annual debt service = $19,200
DSCR = $24,000 ÷ $19,200 = 125 (actually 1.25)
Frequently Asked Questions
What DSCR do lenders require?
Lender requirements vary. Many conventional lenders prefer 1.20–1.25+, but requirements depend on loan type, lender, property type, and market. This calculator does not represent any lender's requirements. Always verify with your lender.
How does DSCR differ from cap rate?
DSCR includes debt service and measures whether income covers loan payments. Cap rate excludes debt and measures income yield relative to property value. Use both — they measure different things.
What is included in NOI for DSCR?
NOI = effective gross income minus all operating expenses (taxes, insurance, management, maintenance, etc.), before mortgage payments.
Educational Disclaimer
All calculations are estimates for educational and planning purposes only. PropertyFlowTools.com does not provide financial, tax, legal, lending, or investment advice. Verify calculations and consult qualified professionals before making property or financing decisions.
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Last reviewed: 2026