DSCR calculator
Enter annual net operating income and total annual debt service (existing + proposed). See your debt-service coverage ratio with lender-threshold guidance. Educational illustration — not a credit decision.
Visible formulas
DSCR = net operating income ÷ total debt service
Common lender threshold: DSCR ≥ 1.25× (varies by lender and loan type)
Reading your result
- Below 1.0×: income does not cover debt service — most lenders decline.
- 1.0× – 1.24×: covers payments with little cushion — a hard sell at most banks.
- 1.25× and above: the commonly cited comfort zone — still not a guarantee.
A worked example
$216,000 net operating income ÷ ($60,000 existing + $84,000 proposed) = $216,000 ÷ $144,000 = 1.50×. That clears the common 1.25× threshold with cushion — before collateral, credit and industry are considered.
Common questions
What counts as net operating income?
Operating income before interest, taxes, depreciation and amortization adjustments vary by lender — ask what definition your lender uses, and use the same one here. Keep owner compensation treatment consistent.
Does a 1.25× DSCR guarantee approval?
No. It is one input among many: collateral, credit history, time in business, industry risk and the lender's own criteria all matter.
Does the calculator store my numbers?
No. Calculations run in your browser. Reloading resets the example. See Privacy.
Calculator output does not establish credit decisions, quotes or suitability for any decision. Ameti Capital is not a lender or broker. See Use & limitations.