Debt Service Coverage Ratio (DSCR) Calculator

Income

$
Total gross rental income the property generates per month.

Loan Details

$
The total loan amount for the property.
yrs
The length of the loan in years (e.g. 30).
%
The annual interest rate on the loan (e.g. 7.5).

$
Monthly loan payment plus taxes, HOA, and insurance.

Monthly Payments

$
Monthly property tax amount, if applicable.
$
Monthly HOA fees, if applicable.
$
Monthly property insurance cost, if applicable.

$
Principal and interest payment calculated from your loan details.

A DSCR above 1.25 is generally considered healthy for commercial real estate.

How To Use Our Debt Service Coverage Ratio (DSCR) Calculator

  • 1
    Enter your monthly rental income — the gross rent the property generates each month.
  • 2
    Input the loan amount, loan term in years, and annual interest rate.
  • 3
    Optionally add monthly property taxes, HOA fees, and insurance for a more complete and accurate DSCR.
  • 4
    The calculator automatically computes your monthly loan payment, total monthly payments, and DSCR.

Understanding Your Results

 

  • Monthly Loan Payment is the principal and interest portion of your debt service, calculated using standard amortization based on the loan details you entered.

  • Total Monthly Payments adds your optional expenses — taxes, HOA, and insurance — to the loan payment to reflect the full monthly cost of holding the property.

  • DSCR is monthly rental income divided by total monthly payments. A DSCR below 1.0 means the property’s income doesn’t cover its obligations — most lenders will not finance this. A DSCR of exactly 1.0 means you break even with no margin for vacancies or surprises. A DSCR of 1.25 or above is the standard threshold most lenders require, and is generally considered the minimum for a financially healthy investment property.

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