Debt Service Coverage Calculator
Calculate the debt service coverage ratio (DSCR) to measure a company's ability to service its debt from operating income.
How to Use the Debt Service Coverage Calculator
- Enter net operating income.
- Enter total annual debt service (principal + interest).
- Click Calculate.
- Review DSCR and coverage status.
Casos de Uso
- •Commercial lending analysis
- •Real estate investment evaluation
- •Loan qualification assessment
Fórmula
DSCR = Net Operating Income / Total Debt Service
Perguntas Frequentes
What DSCR do lenders require?
Most lenders require a minimum DSCR of 1.2, meaning 20% more income than needed for debt payments.
What does DSCR below 1 mean?
It means the entity does not generate enough income to cover its debt obligations.
Is this calculator free?
Yes, all calculators are completely free.