What is a good DSCR for a rental property?

DSCR = Net Operating Income ÷ Total Debt Service. Most lenders require a DSCR of at least 1.20–1.25, meaning the property generates 20–25% more income than needed to cover debt payments.

DSCR Calculator

Estimate debt service coverage ratio for a property.

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Net Operating Income / month ($)

Monthly debt service ($)

About This Calculator

Debt Service Coverage Ratio measures whether a property's income is sufficient to cover its debt obligations. Most commercial lenders require a minimum DSCR of 1.2–1.25, meaning the property generates 20–25% more income than is needed for loan payments. This calculator shows your DSCR and converts monthly figures to annual.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

DSCR = monthly NOI ÷ monthly debt service; annual NOI = monthly NOI × 12; annual debt service = monthly debt service × 12