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DSCR Calculator

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Commercial Real Estate Loan Resources


DSC Calculator - Debt Service Coverage Calculator


The DSCR or debt service coverage ratio is the relationship of a property's annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments). For example, if a property has $125,000 in NOI and $100,000 in annual mortgage debt service, the DSCR is 1.25.


Use our debt service coverage calculator to quickly determine the DSCR for your multifamily of commercial property. It's important to understand that how you calculate the NOI will differ from how a lender calculates DSCR. Learn more about how a lender calculates NOI and debt service coverage.

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Commercial Loan Calculator  - DSCR Calculator - Definitions


Commercial loan amount

Total amount of your loan.



Payment period in years.


Interest rate

Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.


New monthly payment

Monthly payment for this loan.


Annual Verifiable net income

Your annual net income from IRS tax returns or other financial statements.


Annual depreciation expense

Since depreciation reduces your net income, but not your cash flow, we add back depreciation in calculating your total net cash income.


Other non-cash charges

Like depreciation, these are other non-cash charges to your net income that should be added back to calculate your total net cash income for the year.


Real estate mortgage

Your monthly payment for any real estate mortgages.


Business line of credit

Your monthly payment for any business lines of credit.


Auto loans

Your monthly payment for any auto loans.


Credit cards

Your monthly payment for any credit cards.


Other loans

Your monthly payment for any other outstanding loans.


Monthly debt payments eliminated

Enter the amount, if any, of the monthly obligations you entered above that will be paid off by this new loan.


Debt Service Coverage (DSC)

The Debt Service Coverage (DSC) is determined by dividing the total annual net cash income by the total annual debt service. If you have a DSC of 1.25 or higher, there is a good chance that you will be approved for your loan.