What is DSCR?
Debt service coverage ratio is net operating income divided by annual debt service. A value of 1.25x means modeled NOI is 1.25 times the modeled annual debt payment.
US · USDTransparent educational estimate
DSCR Loan Calculator for Rental Property
Compare net operating income with annual debt service and an editable coverage target. Use direct annual inputs or estimate both values from a complete monthly scenario.
What this baseline models
- Direct annual or estimated monthly inputs
- Editable 1.25x example target
- Maximum debt service and payment
- NOI sensitivity and target status
Local workspace
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Model debt coverage
Inputs and assumptions
Use the complete annual pair, or clear both annual fields and enter all three monthly values. Annual inputs take precedence when both methods are complete.
DSCR
1.25×
NOI divided by annual debt service
Target status
Meets target
Compared with the editable 1.25× target
Maximum annual debt service
$60,000
Annual debt service at the selected target DSCR
Maximum monthly payment
$5,000.00
Monthly equivalent at the selected target DSCR
Coverage detail
Coverage inputs, selected target, and the income required to meet it.
- Input source
- Direct annual inputs
- Net operating income
- $75,000
- Annual debt service
- $60,000
- Selected target DSCR
- 1.25×
- Required NOI at target
- $75,000
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Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Lender requirements vary
The target is an analysis assumption, not a lending decision or promise of loan eligibility.
NOI sensitivity
Each row reruns the same formula engine while changing NOI by ±5% and ±10% with debt service held constant.
NOI sensitivity details
| NOI change | NOI | DSCR | Target status |
|---|---|---|---|
| -10.00% | $67,500 | 1.13× | Below target |
| -5.00% | $71,250 | 1.19× | Below target |
| Base | $75,000 | 1.25× | Meets target |
| +5.00% | $78,750 | 1.31× | Meets target |
| +10.00% | $82,500 | 1.38× | Meets target |
Formula reference
Every output is explainable
Money is displayed in USD and rates are entered as percentages where applicable. Formula version dscr@1.0.0 stays attached to the result.
Annual NOI from monthly inputs
(Monthly rent - Monthly expenses) × 12
When annual NOI is not supplied, the calculator annualizes monthly rent after monthly operating expenses.
Annual debt service from monthly inputs
Monthly mortgage payment × 12
When annual debt service is not supplied, the calculator annualizes the monthly mortgage payment.
Debt service coverage ratio
NOI ÷ Annual debt service
DSCR compares net operating income with the annual debt payments it must cover.
Maximum annual debt service
NOI ÷ Target DSCR
This is the annual debt service that would exactly meet the selected target DSCR.
Required NOI
Annual debt service × Target DSCR
This is the NOI required for the current annual debt service to exactly meet the selected target.
Example scenario
A 1.25× coverage example
The default scenario pairs $75,000 in NOI with $60,000 in annual debt service for a 1.25x DSCR. The selected target is editable and is not a promise of lender approval.
Open the example in the calculatorNet operating income
$75,000
Annual debt service
$60,000
Example target
1.25×
Calculated DSCR
1.25×
FAQ
Common questions
Why does the example use a 1.25x target?
It is a representative, editable educational example. Lender requirements vary by loan, property, borrower, and market, so this page does not determine qualification.
Should I use annual or monthly inputs?
Use direct NOI and annual debt service when you have them. Otherwise clear both annual fields and complete monthly rent, expenses, and mortgage payment to create an annual estimate.
What happens when annual debt service is zero?
The ratio is unavailable because division by zero is undefined. The calculator still shows target-related amounts where the underlying formula remains valid.
Guide, methodology, and related calculators
Read the supporting methodology, then compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.