Commercial DSCR Calculator

Commercial lenders size loans to DSCR targets — the amortizing payment against NOI. This calculator computes DSCR, stress-tests against a rate shock, and returns the maximum loan size at the lender's minimum — the number that actually closes.

Annual NOI

Loan amount

Interest rate

Amortization (years)

Lender minimum DSCR

Rate stress shock (bps)

Current DSCR

1.44

Stressed DSCR

1.3

Max loan at minimum DSCR

$6,328,433

NOI cushion above min

$78,544

Annual debt service

$417,165

Meets lender minimum

Yes

How the math works

Commercial DSCR = NOI ÷ annual debt service. Banks require 1.20-1.30x on stabilized commercial; CMBS conservative at 1.25-1.35x; hotels and heavy operating assets 1.40x+. The stressed DSCR runs the same math at +100 bps to verify the deal still works after a rate shock.

Max loan at minimum DSCR is the loan you can actually close — above that, the lender will size down automatically at rate lock.

How to Use

Enter NOI, loan amount, rate, and amortization.
Enter lender minimum DSCR (typical 1.25x).
Enter rate stress shock in bps.
Read DSCR, stressed DSCR, and max loan.

Frequently Asked Questions

DSCR vs debt yield?

DSCR is rate-sensitive (loan becomes tighter as rates rise). Debt yield is rate-independent (just NOI ÷ loan). Modern lenders use both; the binding constraint is whichever sizes the loan smaller.

Typical minimums by asset class?

Multifamily: 1.20-1.25x. Office/retail: 1.25-1.30x. Industrial: 1.20-1.25x. Hotels: 1.40-1.50x. Self-storage: 1.25-1.30x. All subject to debt yield and LTV constraints.

Amortization matters?

Yes. 30-year amort gives lower payment than 25-year, so higher DSCR at same loan. CMBS commonly uses 30-year amortization with 10-year balloon. Banks use 20-25 years.