DSCR Calculator

DSCR Calculator ; A DSCR (Debt Service Coverage Ratio) calculator is a financial tool that is commonly used to evaluate the ability of a company or individual to service their debt obligations. In simple terms, it is a ratio of cash inflows to debt obligations, and it provides an insight into how much income is available to pay off debts.

You will get immediate access to a report detailing your business property’s Cap Rate and ROI (Return on Investment).

Just input the Purchase Price, Net Operational Income, and Down Payment to determine automatically the Loan Amount, Yearly Debt Service, and Annual Cash Flow.

The calculator also dynamically displays the Debt Service Coverage Ratio(DSCR), Cap Rate, and Return on Investment.

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If You want to calculate DSCR with excel , You can simple use our Debt Service Coverage Ratio Calculate Excel Template


The DSCR calculator is a useful tool for lenders, investors, and borrowers. Lenders use it to assess the creditworthiness of a borrower before granting them a loan. Investors use it to evaluate the potential returns on investment in a particular project or business. Borrowers use it to determine whether they can afford to take on additional debt or not.

The DSCR calculator works by taking into account the total amount of debt obligations that a company or individual has, including interest payments and principal repayment. It then compares this with the total amount of cash inflows that the company or individual receives. The result is expressed as a ratio, with a value greater than 1 indicating that there is sufficient cash flow to service the debt obligations, and a value less than 1 indicating the opposite.

The formula for calculating DSCR is simple as follows:

DSCR = Net Operating Income (NOI) / Total Debt Service


  • Net Operating Income (NOI) is the income generated by a property after deducting operating expenses, but before deducting debt service (principal and interest) and income taxes.
  • Total Debt Service is the sum of all principal and interest payments on outstanding loans during a given period.

To calculate the DSCR, you must first determine the NOI and total debt service of the company. Then, divide the NOI by the total debt service to arrive at the DSCR.

For example, let’s say a company has an NOI of $500,000 and a total debt service of $400,000. The DSCR would be calculated as follows:

DSCR = $500,000 / $400,000 DSCR = 1.25

In this case, the DSCR is 1.25, which indicates that the company generates enough cash flow to cover its debt obligations with some room to spare.

Here are a Youtube Video to Have True Information About How to Caculate DSCR Loan?

YouTube video

DSCR Calculator Tips

There are several factors that can affect the DSCR ratio, including changes in interest rates, fluctuations in cash flows, and changes in the amount of debt obligations. Therefore, it is important to regularly monitor the DSCR ratio to ensure that it remains at a healthy level.

In conclusion, the DSCR calculator is a valuable tool for assessing the creditworthiness of a borrower, evaluating the potential returns on investment, and determining whether an individual or company can afford to take on additional debt. By using this tool, lenders, investors, and borrowers can make informed decisions about their financial position and the risks associated with their investments.

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