What DSCR do commercial lenders require?

Most commercial lenders require 1.20-1.35x DSCR. A 1.25 DSCR means NOI is 25% above debt service. At exactly 1.0x, all NOI goes to debt service with no cushion for vacancies or expenses.

How is DSCR used in DSCR loan programs?

DSCR residential investor loans qualify based on rental income vs mortgage payment, not personal income. Lenders want rent / PITIA at 1.0-1.25x+. These are popular for real estate investors who are self-employed or have complex tax returns.

What is a global DSCR?

For small business or mixed-use properties: all business income and all personal and business debt are included in a global cash flow analysis. More conservative than property-level DSCR alone.

DSCR Debt Service Coverage Ratio Calculator

Calculate Debt Service Coverage Ratio: DSCR = Net Operating Income / Total Debt Service. Lenders require DSCR of 1.20-1.35x minimum for commercial real estate loans.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Debt Service Coverage Ratio: DSCR = Net Operating Income / Total Debt Service. Lenders require DSCR of 1.20-1.35x minimum for commercial real estate loans. Use the dscr result to inform your calculation.

Related Calculators

NOI Calculator

Finance & Accounting

Cap Rate

Finance & Accounting

Monthly Mortgage Payment

Finance & Accounting

DSCR Debt Service Coverage Ratio Calculator

How to Use

Related Calculators

Frequently Asked Questions

What DSCR do commercial lenders require?

How is DSCR used in DSCR loan programs?

What is a global DSCR?