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DSCR Calculator (Debt Service Coverage Ratio)

Calculate the debt service coverage ratio on a rental: NOI over annual debt, with a pass/fail vs the 1.25 minimum.

About this tool

DSCR Calculator is a free, in-browser tool that computes the debt service coverage ratio lenders use to qualify rental-property loans. Enter the monthly rent, a vacancy allowance, monthly operating expenses and the loan terms, and it returns the DSCR along with net operating income and annual debt service. All math runs locally on your device — nothing is uploaded.

Net operating income is annualized: NOI = rent × 12 × (1 − vacancy ÷ 100) − operating expenses × 12. The mortgage payment uses the standard amortization formula M = L·r ÷ (1 − (1+r)⁻ⁿ) with r = rate ÷ 1200 and n = term × 12; annual debt service is M × 12. The ratio is DSCR = NOI ÷ annual debt service.

A DSCR of 1.00 means the property's income exactly covers its loan payments; most DSCR lenders want at least 1.25, and the tool flags a pass or fail against that threshold. Use it to pre-screen a rental before applying, or to see how a bigger down payment (lower loan) or lower rate lifts the ratio.

Frequently asked questions

What DSCR do lenders require?
Most DSCR loan programs want a ratio of at least 1.25, meaning net operating income is 25% more than the annual mortgage payment. The tool marks the result as a pass at or above 1.25 and a fail below it, though individual lenders vary.
What counts as operating expenses here?
Recurring costs of running the property — property taxes, insurance, property management, maintenance and reserves — but not the mortgage payment itself. The loan payment is handled separately as debt service.
Why does DSCR use NOI and not cash flow after the mortgage?
DSCR deliberately compares income before financing (NOI) against the debt payment, so the ratio measures how comfortably the property's own income covers the loan. Subtracting the mortgage first would double-count it.
Is any of this data sent to a server?
No. Rents, expenses and loan terms are processed entirely in your browser; the calculator works offline and uploads nothing.

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