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Debt Service Coverage Ratio Calculator

Standalone DSCR calculator that handles both P&I-only and PITIA treatment, with lender target comparison. Use for rental property underwriting, commercial loans, and DSCR-specific lending programs.

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DSCR

1.29

Lender flag

Passes minimum

Max annual debt service at target

$57,600

NOI cushion vs target

$2,000

How the math works

DSCR = NOI / annual debt service. Lenders typically require 1.20-1.25 for stabilized multifamily and commercial, 1.00-1.10 for newer DSCR lender programs on single-family rentals.

PITIA vs P&I only matters. Stricter lenders use PITIA (P&I + taxes + insurance + HOA) and require higher cushion. DSCR loans on single-family rentals often use P&I only with a slightly higher minimum.

How to Use

  1. Enter annual NOI (effective rent less operating expenses).
  2. Enter annual debt service (principal + interest).
  3. Pick P&I only or full PITIA.
  4. Enter lender's minimum DSCR to see pass/fail.

Frequently Asked Questions

What DSCR do residential DSCR loans require?

Varies by lender. 1.00 (break-even) minimum for most, 1.10-1.25 for best rates. Some no-ratio DSCR programs exist for high-quality borrowers, priced higher.

Commercial DSCR minimums?

1.20-1.25 for stabilized multifamily. 1.25-1.35 for office, retail. 1.40-1.50 for hotel, specialty. Conservative lenders add 0.1-0.2 cushion on top.

Should I use market rent or lease rent?

Both. Lender typically uses the lesser of current lease rent and market rent for occupied units, 75% of market rent for vacant. Conservative approach gives a stress-tested DSCR.

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