What this calculator does
DSCR (debt service coverage ratio) works out whether a property or business generates enough income to cover its debt payments. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Net operating income (monthly) ($) | A number, measured in your currency. Starts at 8000. |
| Total debt service (monthly) ($) | A number, measured in your currency. Starts at 6000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with net operating income (monthly)
Every other input is held at the calculator’s starting values while net operating income (monthly) varies. Select any row to load that scenario into the calculator.
| Net operating income (monthly) ($) | DSCR | Surplus cash flow after debt service | Assessment |
|---|---|---|---|
| 4,000 | 0.67 | −$2,000.00 | Weak: income does not fully cover debt payments |
| 6,000 | 1.00 | $0.00 | Adequate, but with limited buffer |
| 8,000 | 1.33 | $2,000.00 | Strong: comfortably covers debt payments |
| 12,000 | 2.00 | $6,000.00 | Strong: comfortably covers debt payments |
| 16,000 | 2.67 | $10,000.00 | Strong: comfortably covers debt payments |
| 24,000 | 4.00 | $18,000.00 | Strong: comfortably covers debt payments |