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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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Commercial DSCR Calculator is built to give a quick, browser-based estimate for commercial dscr. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the commercial dscr result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this commercial dscr estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.