Calculate the Debt Service Coverage Ratio (DSCR): Net Operating Income / Total Debt Service. Lenders require DSCR ≥1.20 for commercial mortgages (meaning income covers debt 1.2× over). A DSCR below 1.0 means the property does not generate enough income to cover its debt obligations.
Enter the values for the scenario you are assessing. Calculate the Debt Service Coverage Ratio (DSCR): Net Operating Income / Total Debt Service. Lenders require DSCR ≥1.20 for commercial mortgages (meaning income covers debt 1.2× over). A DSCR below 1.0 means the property does not generate enough income to cover its debt obligations. Use the dscr calculator result to inform your calculation.