Investor DSCR Calculator

What is DSCR?

The Debt Service Coverage Ratio (DSCR) is a key metric used by lenders to determine if a property generates enough income to pay its own mortgage. Unlike traditional loans that look at your personal paycheck, a DSCR loan evaluates the property's "paycheck."

DSCR =
Net Operating Income (NOI)
Annual Debt Service
1.25 or Higher: The Gold Standard Lenders view this as a high-performing asset with a 25% buffer to cover unexpected vacancies or repairs.
1.00 to 1.20: Thin Margin The property is cash-flow positive, but the "cushion" is small. You may face higher interest rates.
Below 1.00: Negative Cash Flow The property costs you money to own each month. Most lenders will not finance assets in this range.
Foundation Note: Structural issues can erode your DSCR by increasing insurance premiums or causing units to become unrentable.

DSCR Calculator

Measure your Net Operating Income against your Debt Service to see how property issues affect your financing.

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Note: Most DSCR lenders look for a ratio of 1.20 or higher. If foundation issues lead to vacancy or higher insurance premiums, your NOI drops, which can push your ratio below lender requirements.