📊 Debt Service Coverage Calculator

Calculate your ability to take on debt and analyze key cash flow metrics.

Debt Service

%
years
$
$

Calculate NOI

$
$

Coverage Ratio

$

Debt Service Coverage Ratio

-
-

💡 Professional financial analysis tool by CFO Hub • Empowering finance leaders with actionable insights

How Does the Debt Service Coverage Ratio (DSCR) Calculator Work?

Our Debt Service Coverage Ratio calculator simplifies the assessment of your ability to manage debt obligations using key financial inputs:

1. Debt Service Inputs:

  • Interest Rate: The annual interest rate of your loan.
  • Loan Term: Duration of the loan repayment period in years.
  • Total Loan Amount: The principal amount borrowed.

These values are used to compute the Monthly Loan Payment, directly impacting your debt obligations.

2. Net Operating Income (NOI) Calculation:

  • Gross Rental Income: Total potential income from rentals, adjustable monthly or annually.
  • Vacancy Rate: Percentage of rental income lost due to vacancies.
  • Operating Expenses: Regular costs incurred in operating and maintaining the property.

NOI is calculated as:

NOI = Gross Rental Income × (1 − Vacancy Rate) − Operating Expenses

3. Coverage Ratio:

The calculator computes DSCR by dividing NOI by annualized debt service (total annual loan payments):

DSCR = Net Operating Income ÷ Annual Debt Service

Why Use a Debt Service Coverage Ratio Calculator?

Understanding your DSCR helps lenders assess your financial health and your ability to comfortably cover loan payments. A higher DSCR indicates stronger financial security, making it easier to obtain financing on favorable terms. Aim for a DSCR greater than 1.25, a common benchmark lenders prefer for financial stability.

Explore your financial potential confidently by regularly checking your Debt Service Coverage Ratio with our easy-to-use calculator.

The tools and calculators provided on this site are for general informational purposes only and are intended to support your own financial analysis. They are not a substitute for professional financial, tax, or investment advice. CFO Hub makes no guarantees about the accuracy or relevance of these tools for your specific situation. All figures are hypothetical and meant solely to illustrate potential scenarios. We recommend consulting with a qualified advisor for guidance tailored to your needs. If you have any questions, feel free to reach out to us directly.