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

ସୂତ୍ର

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

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  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

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
NOI $50k, debt $30k
ଫଳ
DSCR 1.67

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

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

ବାରମ୍ବାର ଜିଜ୍ଞାସା

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.

ସେଟିଂ