Calculators
DSCR Calculator
Calculate the Debt Service Coverage Ratio for any multifamily deal. DSCR measures whether a property generates enough income to cover its debt obligations and is the primary metric lenders use to size loans.
Property Income
Loan Details
Debt Service Coverage Ratio
Most agency lenders (Fannie Mae, Freddie Mac) require a minimum DSCR of 1.20x to 1.25x. CMBS and bridge lenders may accept lower ratios depending on the business plan and sponsor strength.
Calculation Details
What is DSCR?
Debt Service Coverage Ratio (DSCR) is the most important metric in commercial real estate lending. It measures a property's ability to generate enough income to cover its mortgage payments, calculated by dividing the Net Operating Income by the total annual debt service.
A DSCR of 1.00x means the property generates exactly enough income to cover debt payments with zero margin. Most lenders require at least 1.20x to 1.25x, providing a cushion against vacancy, expense increases, or revenue declines.
DSCR is used alongside Debt Yield and Loan-to-Value (LTV) to determine maximum loan proceeds. The most constraining of these three metrics typically governs the final loan amount.