DSCR Calculator (Debt Service Coverage)

Calculate DSCR for investment property loans. See if NOI covers your debt payments.
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Debt Service Input
$

DSCR

1.33

Monthly Cash Flow

$1,250.00

Annual Cash Flow

$15,000.00

DSCR Analysis

DSCR1.33
RatingStrong — qualifies for most loans
Annual NOI$60,000.00
Annual Debt Service$45,000.00
Monthly Debt Payment$3,750.00
Max Loan at 1.25 DSCR$601,230.27

Use the DSCR Calculator (Debt Service Coverage) above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our DSCR Calculator helps you quickly determine the Debt Service Coverage Ratio for your investment property loans, a crucial metric for lenders and investors alike. This tool shows if your property's Net Operating Income (NOI) is sufficient to cover its debt payments, offering a clear picture of financial health and borrowing capacity. As of 2026, lenders are increasingly scrutinizing DSCR, with many requiring a minimum of 1.25x for competitive investment property financing.

The Debt Service Coverage Ratio (DSCR) is calculated by dividing your property's Net Operating Income (NOI) by its total annual debt service. NOI is derived from your property's gross rental income minus operating expenses (excluding mortgage payments, depreciation, and income taxes). The total annual debt service includes all principal and interest payments due on the loan within a year, representing the total cost of servicing your debt.

When using this calculator, ensure you're using accurate and up-to-date figures for your property's income and expenses. A common mistake is overlooking all operating expenses or miscalculating the annual debt service, leading to an inaccurate DSCR. Remember that a DSCR below 1.0x indicates negative cash flow, meaning your property isn't generating enough income to cover its debt obligations.

Example: Duplex Investment Property in Austin, TX

  1. 1 Input your property's annual Net Operating Income (NOI) - Let's say your Austin duplex generates an NOI of $60,000 annually. Input your total annual debt service - Your mortgage payments (principal and interest) total $48,000 per year.
  2. 2 The calculator takes your NOI ($60,000) and divides it by your total annual debt service ($48,000).
  3. 3 The calculated DSCR for your Austin duplex is 1.25x.
  4. 4 A DSCR of 1.25x indicates that your property's NOI is 125% of your annual debt payments. This is generally considered a healthy ratio and often meets the minimum requirement for many lenders in 2026, signifying good cash flow and low repayment risk.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

What is DSCR and why does it matter?
Debt Service Coverage Ratio (DSCR) equals Net Operating Income divided by total debt service (annual mortgage payments). Lenders use it to verify a property generates enough income to cover loan payments. A DSCR of 1.25 means the property earns 25% more than the debt payments.
What DSCR do lenders require?
Most investment property lenders require a minimum DSCR of 1.20 to 1.25. DSCR loans specifically designed for investors may accept 1.0 or even 0.75 for strong borrowers, but at higher interest rates.
How do I calculate DSCR?
DSCR equals annual Net Operating Income (gross rent minus operating expenses, not including mortgage) divided by annual debt service (total mortgage payments). A property with $36,000 NOI and $30,000 annual mortgage has a 1.20 DSCR.

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