DSCR calculator for commercial real estate loans
Debt service coverage ratio is the first number a credit officer checks. Enter NOI and loan terms to see DSCR, debt service, and the most a lender's minimum will allow.
Illustrative only. Not a quote, commitment or credit decision from any lender.
The formula
DSCR = Net operating income ÷ Annual debt service
How to use it
- Enter annual NOI after operating expenses and before debt service.
- Enter the loan amount, rate and amortization. Use 0 years for an interest-only period.
- Set the lender's minimum DSCR to see whether the deal clears it and the maximum loan at that coverage.
Go deeper
GuideHow to size a commercial real estate loan →Questions
What is a good DSCR for a commercial loan?
Many lenders look for roughly 1.20x to 1.35x on stabilized assets, higher for riskier property types. It varies by lender, program and market.
Should I use interest-only or amortizing debt service?
Lenders often test both. Some size on an amortizing payment even when the loan has an interest-only period, so check the term sheet.
Why does a lender's DSCR differ from mine?
Lenders underwrite their own NOI (vacancy, management fee, reserves) and may stress the rate. Their NOI is usually lower than the sponsor's.
One closed deal covers the year.
Start on the introductory rate and see a package come out of a real deal this week.