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Calcimator

DSCR Calculator

Calculate debt service coverage ratio to assess commercial loan qualification.

Inputs

$/yr
$
%
years
$

Results

DSCR

1.11

Monthly Payment

$13,504.14

≈ 9 months of rent

Annual Debt Service$162,049.72
Loan-to-Value71.43%
Debt Yield9%
Max Loan at 1.25 DSCR$1,777,232.00
Break-Even Occupancy90.03%
How to Use This Calculator
  1. Enter Net Operating Income (annual NOI) from the property's income and expense statement.
  2. Set Loan Amount, Interest Rate, and Loan Term to calculate annual debt service.
  3. Enter Property Value for LTV and debt yield calculations.
  4. Review DSCR — a ratio above 1.25 typically meets commercial lender requirements; below 1.0 is cash-flow negative.
  5. Check Max Loan at 1.25 DSCR to determine the maximum supportable loan at lender minimums.
  6. Review Break-Even Occupancy to understand how much vacancy the property can absorb before going cash-flow negative.

How the result changes with Loan Amount

Loan AmountDSCRMonthly Payment
$10,000,000.000.22$67,520.72
$35,000,000.000.06$236,322.51
$65,000,000.000.03$438,884.65
$90,000,000.000.03$607,686.45

What each input means

Net Operating Income
Annual net operating income (revenue minus operating expenses).
Loan Amount
Total loan amount being requested.
Interest Rate
Annual interest rate on the commercial loan.
Loan Term
Amortization period in years.
Property Value
Appraised or purchase price of the property.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Net Operating Income = 180000, Loan Amount = 2000000, Interest Rate = 6.5, Loan Term = 25 = 5 input(s) provided
  2. Calculate DSCR
    DSCR
    1.111 = 1.111
  3. Calculate Monthly Payment
    Monthly Payment
    13504.14 = $13,504.14
  4. Calculate Annual Debt Service
    Annual Debt Service
    162049.72 = $162,049.72
  5. Calculate Loan-to-Value
    Loan-to-Value
    71.43 = 71.43%

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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