Skip to main content

learn.howToCalculate

learn.whatIsHeading

Calculates debt service coverage ratio (DSCR) showing ability to pay debt from income. Lender requirement metric.

सूत्र

DSCR = NOI ÷ Total Annual Debt Service
NOI
NOI value — Variable used in the calculation

चरण-दर-चरण मार्गदर्शिका

  1. 1DSCR = NOI ÷ Total Annual Debt Service
  2. 2Total Debt Service = principal + interest on all loans
  3. 3Typical lender requirement: 1.2-1.3× minimum
  4. 4Higher = safer for lender, more cushion for owner

हल किए गए उदाहरण

इनपुट
NOI $50k, debt $30k
परिणाम
DSCR 1.67

सामान्य गलतियां जिनसे बचना है

  • Using gross income instead of NOI
  • Not including all debt in debt service
  • Assuming DSCR remains static

अक्सर पूछे जाने वाले प्रश्न

What DSCR do lenders require?

Minimum typically 1.2× (20% cushion); 1.25-1.5× for quality deals; <1.0 means insufficient income.

What happens if DSCR < 1.0?

Property cannot cover debt payments from income; owner must subsidize; high default risk.

सेटिंग्स