DSCR Calculator
Calculate Your Debt Service Coverage Ratio
Enter your annual income, expenses, and loan details. Results are estimates only, not a financing commitment.
Business Cash Flow
Annual Income minus Annual Expenses
Debt Assumptions
5–40 years. Defaults to 25 for SBA / Commercial.
Based on 25-year amortization
DSCR Result
DSCR Risk Assessment
Below typical lender minimum
Borderline
Strong
No threshold is a guarantee of approval. Lender standards vary.
Enter your numbers and click “Calculate DSCR” to see your result.
Results are estimates based on the inputs provided and standard assumptions. They do not represent a loan offer, approval, rate commitment, or lender decision. Actual terms are determined by lenders based on full underwriting review.
Related Programs
Financing That Uses DSCR
These programs are underwritten using debt service coverage ratio as a primary qualification metric.
Frequently Asked Questions
DSCR Calculator — Common Questions
Can I use DSCR for both real estate and business loans?
Yes — DSCR is used in both commercial real estate and business financing to assess repayment capacity. For real estate, lenders use property income versus debt service. For business loans, they use business cash flow versus total debt obligations.
How do I improve my DSCR?
You can improve your DSCR by increasing NOI (through higher revenue or lower expenses) or by lowering debt service via refinancing at a better rate, extending the loan term, or making a larger down payment to reduce the borrowed principal.
What does a DSCR lender look at beyond the ratio itself?
Most DSCR lenders also review property condition, market rent stability, borrower credit score, loan-to-value (LTV), and whether the income used is verified or projected. A strong DSCR on paper doesn't guarantee approval if other underwriting factors raise concerns.
Is a DSCR loan the same as a conventional investment property loan?
No. DSCR loans are specifically underwritten using property cash flow rather than the borrower's personal income or tax returns. This makes them popular with self-employed investors and those with multiple properties. Conventional loans typically require full income documentation and debt-to-income (DTI) analysis.
Can I use projected or pro forma income in a DSCR calculation?
Some lenders allow market rent projections for vacant or newly acquired properties, but most prefer documented rent rolls or lease agreements. Using inflated projections without documentation is one of the most common reasons DSCR loan files are declined at underwriting.
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