Real Estate
DSCR (Debt Coverage) Calculator
Whether a property’s income covers its loan payments — the ratio lenders check first. Below 1.0 means the property can’t pay its own mortgage.
Inputs
- Net operating income / year — Rental income minus operating expenses, before the loan.
- Annual debt service — Total yearly mortgage payments (principal + interest).
How to use this calculator
- Enter the property's annual net operating income and its annual debt service.
- The ratio shows whether income covers the loan.
- Below 1.0× the property can't pay its own mortgage; lenders usually want 1.25× or more.
What each term means
- DSCR
- Debt service coverage ratio: income divided by loan payments.
- Debt service
- The total annual mortgage payments (principal + interest).
- Coverage cushion
- How far above 1.0× you are, which is your margin of safety.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.