DSCR Calculator (Debt Service Coverage)
Calculate DSCR for investment property loans. See if NOI covers your debt payments.
By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home
DSCR
1.33
Monthly Cash Flow
$1,250.00
Annual Cash Flow
$15,000.00
DSCR Analysis
| DSCR | 1.33 |
| Rating | Strong — qualifies for most loans |
| Annual NOI | $60,000.00 |
| Annual Debt Service | $45,000.00 |
| Monthly Debt Payment | $3,750.00 |
| Max Loan at 1.25 DSCR | $601,230.27 |
Use the DSCR Calculator (Debt Service Coverage) above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Debt Service Coverage Ratio tells lenders and investors whether a property earns enough to cover its loan payments, which is why it sits at the center of most investment-property underwriting. The ratio compares Net Operating Income (NOI) against debt obligations to show how much cushion a borrower has. By 2026, lenders are weighing it more heavily than ever, and many now set a floor of 1.25x for competitively priced financing.
The calculation divides the property's Net Operating Income (NOI) by its total annual debt service. NOI is gross rental income less operating expenses, leaving out mortgage payments, depreciation, and income taxes. Total annual debt service captures every principal and interest payment due on the loan across a year, representing the full cost of carrying the debt.
The result is only as reliable as the income and expense figures behind it, so use current, well-documented numbers. Skipping operating expenses or miscalculating the annual debt service throws the ratio off and can make a marginal deal look safe. A DSCR below 1.0x is the warning line: it means the property runs at negative cash flow and cannot generate enough income to meet its debt.
Example: Duplex Investment Property in Austin, TX
- 1 Input your property's annual Net Operating Income (NOI) - Let's say your Austin duplex generates an NOI of $60,000 annually. Input your total annual debt service - Your mortgage payments (principal and interest) total $48,000 per year.
- 2 The calculator takes your NOI ($60,000) and divides it by your total annual debt service ($48,000).
- 3 The calculated DSCR for your Austin duplex is 1.25x.
- 4 A DSCR of 1.25x indicates that your property's NOI is 125% of your annual debt payments. This is generally considered a healthy ratio and often meets the minimum requirement for many lenders in 2026, signifying good cash flow and low repayment risk.
Source: CFPB — Owning a Home · Last updated: April 2026
Frequently Asked Questions
What is DSCR and why does it matter?
What DSCR do lenders require?
How do I calculate DSCR?
You might also need
Mortgage Calculator 2026 — Payment, Amortization & PMI
Calculate your monthly mortgage payment with taxes, insurance, PMI, and HOA. View full amortization schedule. Free, instant results based on current rates.
FHA Loan Calculator 2026 — MIP, Down Payment & Limits
Calculate FHA loan payments including upfront MIP (1.75%) and annual MIP premiums. See when MIP drops off. Free, instant results based on 2026 FHA limits.
Home Affordability Calculator — How Much House Can You Afford?
Find out how much house you can afford based on income, debts, down payment, and current mortgage rates. Free, instant results with DTI ratio breakdown.