Debt Service Coverage Ratio Calculator
Compute the DSCR by dividing net operating income by total debt service. Values above 1 indicate adequate income to cover debt obligations.
Not investment advice; verify figures with financial professionals.
Examples
- $50,000 income ÷ $40,000 debt ⇒ 1.25 ratio
- $80,000 income ÷ $60,000 debt ⇒ 1.33 ratio
FAQ
What does a DSCR below 1 mean?
A DSCR under 1 indicates insufficient income to meet debt payments.
Can DSCR help in loan approval?
Lenders use DSCR to assess a borrower's ability to repay loans.
Should I include taxes in the calculation?
Use net operating income before taxes for a standard DSCR.
Additional Information
- DSCR compares cash flow with debt obligations.
- Values over 1 show more income than required to cover debt.