DSCR Calculator

The Debt Service Coverage Ratio (DSCR) is the lender's primary underwriting metric for income-producing properties. It measures whether the property generates enough income to cover its mortgage payments. DSCR = Net Operating Income (NOI) ÷ Annual Debt Service (principal + interest).

Most conventional lenders require a minimum 1.25x DSCR — meaning the property earns $1.25 for every $1.00 of debt payments. DSCR lenders for single-family rentals often accept 1.0x (breakeven) for strong borrowers. Agency lending (Fannie Mae, Freddie Mac) typically requires 1.25x for most scenarios. A DSCR below 1.0x means the property can't cover its own debt — a red flag for lenders and investors alike.