{
    "name": "Debt Service Coverage Ratio Calculator",
    "url": "https://calculators.geekmidst.com/calculators/debt-service-coverage-ratio-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/debt-service-coverage-ratio-calculator.md",
    "category": "Real estate",
    "description": "Calculate a property’s debt service coverage ratio from rent, vacancy, expenses and loan terms, and the largest loan that meets your target DSCR.",
    "summary": "The debt service coverage ratio (DSCR) is net operating income divided by the year’s loan payments. Above 1 the property pays its own debt; lenders usually want a cushion above that.",
    "also_called": [
        "DSCR calculator",
        "Debt coverage ratio calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "gross_income",
            "label": "Gross rental income (per year)",
            "type": "number",
            "default": "120000"
        },
        {
            "name": "vacancy",
            "label": "Vacancy and credit loss",
            "type": "number",
            "default": "5",
            "unit": "%",
            "optional": true
        },
        {
            "name": "opex",
            "label": "Operating expenses (per year)",
            "type": "number",
            "default": "34000",
            "optional": true
        },
        {
            "name": "loan",
            "label": "Loan amount",
            "type": "number",
            "default": "800000"
        },
        {
            "name": "rate",
            "label": "Interest rate (per year)",
            "type": "number",
            "default": "6.5",
            "unit": "%"
        },
        {
            "name": "years",
            "label": "Amortisation period",
            "type": "number",
            "default": "25",
            "unit": "years"
        },
        {
            "name": "target_dscr",
            "label": "Target DSCR",
            "type": "number",
            "default": "1.25"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "dscr",
            "label": "DSCR",
            "format": "multiple"
        },
        {
            "key": "noi",
            "label": "Net operating income (per year)",
            "format": "currency"
        },
        {
            "key": "annual_debt_service",
            "label": "Debt service (per year)",
            "format": "currency"
        },
        {
            "key": "monthly_payment",
            "label": "Loan payment (per month)",
            "format": "currency"
        },
        {
            "key": "cash_after_debt",
            "label": "Cash flow after debt (per year)",
            "format": "currency"
        },
        {
            "key": "max_loan",
            "label": "Largest loan at the target DSCR",
            "format": "currency"
        }
    ],
    "formula": {
        "text": "NOI = Gross income × (1 − Vacancy) − Operating expenses;  Debt service = 12 × P × i(1 + i)^n ÷ ((1 + i)^n − 1);  DSCR = NOI ÷ Debt service;  Max loan = PV of (NOI ÷ Target ÷ 12) over n months",
        "variables": {
            "P": "loan amount",
            "i": "monthly interest rate",
            "n": "number of monthly payments"
        }
    },
    "worked_example": {
        "inputs": {
            "gross_income": "120000",
            "vacancy": "5",
            "opex": "34000",
            "loan": "800000",
            "rate": "6.5",
            "years": "25",
            "target_dscr": "1.25",
            "currency": "USD"
        },
        "steps": [
            "NOI = 120,000 × 0.95 − 34,000 = $80,000.",
            "$800,000 at 6.5% over 25 years = $5,401.66 a month, $64,819.89 a year.",
            "DSCR = 80,000 ÷ 64,819.89 = 1.23.",
            "At 1.25 the payment can be 80,000 ÷ 1.25 ÷ 12 = $5,333.33 a month, which supports a loan of $789,881.04."
        ],
        "result": "The property covers its debt 1.23 times; to reach 1.25 the loan would need to be about $789,881."
    },
    "interpretation": "A DSCR of 1.23 means income is 23% more than the loan payments. Below 1, the owner must top up each year. If you are short of a lender’s minimum, a bigger deposit, a longer amortisation or higher rent all raise the ratio.",
    "assumptions": [
        "The loan is fixed-rate with level monthly payments.",
        "Operating expenses exclude loan payments, depreciation and income tax."
    ],
    "limitations": [
        "Lenders differ on vacancy, management and reserve allowances, so their DSCR may differ from yours.",
        "Interest-only and adjustable-rate loans are not modelled."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "What is a good DSCR?",
            "answer": "Many commercial and investment-property lenders look for roughly 1.2–1.35, but the minimum depends on the lender, the property type and the market. Ask yours."
        },
        {
            "question": "Is DSCR the same as cash-on-cash return?",
            "answer": "No. DSCR compares income with loan payments; cash-on-cash compares the cash left after those payments with the cash you invested."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Loan-to-Value Calculator",
            "url": "https://calculators.geekmidst.com/calculators/loan-to-value-calculator"
        },
        {
            "name": "Property Portfolio Allocation Calculator",
            "url": "https://calculators.geekmidst.com/calculators/property-portfolio-allocation-calculator"
        },
        {
            "name": "EMI Calculator",
            "url": "https://calculators.geekmidst.com/calculators/emi-calculator"
        },
        {
            "name": "Mortgage Calculator",
            "url": "https://calculators.geekmidst.com/calculators/mortgage-calculator"
        }
    ],
    "disclaimer": "Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice.",
    "publisher": "GM¹X CalcVerse"
}