Financial Calculators

Want to know how your business will be evaluated by potential lenders? Our financial calculators will help you understand and compute the most commonly used evaluation metrics.

Debt Service Coverage Ratio Calculator

Debt service coverage ratio
Monthly Ebitda
Monthly principal and interest payment on loan

The debt service coverage ratio (DSCR) is used by bank loan officers to determine income property loans. Most lenders require a minimum DSCR of 1.2.

A DSCR of 1.0 is called break even. A DSCR below 1.0 signals a net operating loss based on the debt structure. A DSCR over one means that the property is generating enough income to pay the debt obligations.

The following formula determines the debt service coverage ratio:

DSCR = Net Operating Income/Total Debt Service


DSCR = (Monthly Net Income)/ (Monthly Principal and Interest Payment on Loan)

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