What's My DSCR?
Estimate debt service coverage ratio, underwriting cushion, and max loan support from your NOI assumptions.
Quick answer: DSCR tells me whether a rental property's NOI can cover annual debt service. A ratio above my target (often 1.20-1.25x) usually signals better financing cushion than a ratio below target.
DSCR assumptions
Educational notice (not financial or lending advice)
This calculator is educational only and not financial, tax, or lending advice. Actual underwriting may include additional lender overlays and reserve requirements.
DSCR formulas used
- Effective Gross Income = (Monthly Rent + Other Income) × 12 × (1 - Vacancy Rate)
- NOI = Effective Gross Income - Operating Expenses
- Annual Debt Service = Annualized amortized P&I payments
- DSCR = NOI ÷ Annual Debt Service
I use this as a first-pass underwriting lens before validating lender-specific rules and property-level risks.
Estimated DSCR
0.95x
Target: 1.25x • Below target
Coverage is currently below your DSCR target.
Target benchmark: 1.25x. Use this with lender guidance, reserve requirements, and scenario stress tests before applying.
Effective gross income (annual)
$38,190
NOI (annual)
$24,690
Annual debt service
$25,947
Annual cash flow after debt service
-$1,257
AI DSCR Insights
Underwriting summary
FAQ: DSCR calculator
What DSCR is usually considered lender-friendly?
A common threshold is around 1.20 to 1.25, but each lender and program can set different minimums based on risk, property type, and reserves.
Why does this calculator use NOI instead of gross rent alone?
Lenders typically evaluate debt coverage from NOI, which subtracts operating expenses from effective gross income so the ratio reflects real operating performance.
What does max loan at target DSCR tell me?
It estimates the largest loan your current NOI could support at your target DSCR with the same rate and term assumptions.
Is this calculator financial or lending advice?
No. This is educational only. Final underwriting may include reserve requirements, seasoning rules, credit overlays, and appraisal constraints.
Ready to pressure-test your next rental deal?
Pair DSCR with rent and cash-flow assumptions to evaluate whether a deal can support financing and long-term returns.