Skip to content
Allin
Sign up · Sign in

Debt service coverage ratio (DSCR) calculator

The DSCR — net operating income ÷ total debt service — tells lenders whether a property or business earns enough to cover its loan payments. A DSCR of 1.25 means income is 25% above the debt due, the level most commercial lenders require. Below 1.0 the cash flow cannot cover the debt.

Related tools

All Planning & operations tools →
Fixed charge coverage ratio (FCCR) calculatorThe fixed charge coverage ratio widens interest coverage to include lease and other fixed charges: (EBIT + fixed charges) ÷ (fixed charges + interest). Switch to EBITDA mode to add back depreciation and amortisation, and add principal repayments grossed up by the tax rate when a loan covenant defines FCCR that way. Lenders often require at least 1.25.Interest coverage ratio (ICR) calculatorThe interest coverage ratio — EBIT ÷ interest expense — shows how comfortably operating profit covers interest on debt. Analysts often use an EBITDA variant that adds depreciation and amortisation back, giving a cash-flow-based view of the same cushion. Values under 1.5 are generally seen as risky.Debt-to-asset ratio calculatorThe debt-to-asset ratio — total liabilities ÷ total assets, expressed as a percentage — shows what share of a company's assets is financed by debt. A ratio of 40% means creditors fund 40% of the assets and owners the rest. It is a core solvency gauge; this is distinct from the debt-to-income ratio used for personal loans.Debt-to-equity ratio calculatorCompute a company's debt-to-equity ratio from total debt and equity.Current ratio calculatorCompute the current ratio from current assets and current liabilities.Quick ratio calculatorCompute the quick (acid-test) ratio, excluding inventory from current assets.Asset turnover ratio calculatorCompute how efficiently a company uses its assets to generate revenue.Capital employed calculatorCapital employed — the total capital a business uses to generate profit — by any of the three standard methods: total assets minus current liabilities, non-current assets plus working capital, or equity plus non-current liabilities. Add operating profit (EBIT) and it also returns the ROCE.

The Debt service coverage ratio (DSCR) calculator turns Net operating income (NOI), Total debt service (principal + interest) into DSCR (×), Debt service supported at 1.25×, Lender assessment, instantly and for free. For instance, with Net operating income (NOI) = $150,000.00 and Total debt service (principal + interest) = $120,000.00 it returns DSCR (×) = 1.25, Debt service supported at 1.25× = $120,000.00 and Lender assessment = strong.

How to use it

  1. Enter your values: Net operating income (NOI), Total debt service (principal + interest).
  2. Read the result instantly: DSCR (×), Debt service supported at 1.25×, Lender assessment.

Frequently asked questions

What does the Debt service coverage ratio (DSCR) calculator actually compute?

It takes Net operating income (NOI) and Total debt service (principal + interest) and derives DSCR (×), Debt service supported at 1.25× and Lender assessment from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

2 values: Net operating income (NOI) ($) and Total debt service (principal + interest) ($). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Net operating income (NOI) = $150,000.00 and Total debt service (principal + interest) = $120,000.00, the calculator returns DSCR (×) = 1.25, Debt service supported at 1.25× = $120,000.00 and Lender assessment = strong. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Net operating income (NOI) = $300,000.00 and Total debt service (principal + interest) = $132,000.00 instead, DSCR (×) goes from 1.25 to 2.273 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Net operating income (NOI) = $75,000.00 and Total debt service (principal + interest) = $108,000.00, DSCR (×) comes out at 0.694. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Running the week: issuing an invoice or a quote, knowing what is in stock and what to reorder, and seeing whether cash covers what is due.

What is the most common mistake?

Reading profit as cash. A profitable month with sixty-day payment terms can still leave the account empty — the two numbers answer different questions.

What is the difference between the Debt service coverage ratio (DSCR) calculator and the Fixed charge coverage ratio (FCCR) calculator?

This one returns DSCR (×) and Debt service supported at 1.25×; the Fixed charge coverage ratio (FCCR) calculator returns Fixed charge coverage (×) and Earnings available for fixed charges. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Interest coverage ratio (ICR) calculator is the closest one after this: The interest coverage ratio — EBIT ÷ interest expense — shows how comfortably operating profit covers interest on debt. Analysts often use an EBITDA variant that adds depreciation and amortisation back, giving a cash-flow-based view of the same cushion. Values under 1.5 are generally seen as risky.

What else is worth having open alongside it?

Debt-to-asset ratio calculator and Debt-to-equity ratio calculator — they come up in the same task often enough to be worth a second tab.

Further reading

All guides →
ComparisonInterest Coverage and the Ratios a Lender Actually TestsA loan agreement's covenants are the ratios that can put a solvent, profitable company into default. Interest coverage, times interest earned and DSCR are not three measures — and the one that adds principal repayment is the one that bites.ExplainerFixed-Charge Cover: the Ratio a Landlord or a Lender Looks AtThe same company, the same year, reads 1.02×, 1.52× or 2.56× depending on where rent is put and whether principal is grossed up for tax. Two of those pass a 1.25 covenant and one does not.GuideBorrowing for the Business: What the Bank Looks At Before the RateThe coverage ratio is the gate, the guarantee is the second price and the rate is an output. On a 400,000 loan, cutting the rate by a full point moves the coverage ratio by 0.018 — while two extra years of term move it by 0.216. The whole negotiation is in the wrong place.ComparisonCurrent Ratio vs Quick Ratio, and What Neither Tells YouThe quick ratio removes inventory because inventory is the current asset that may not convert. Two companies with an identical current ratio can be five times apart on the quick ratio — and both measures are still blind to the one thing that actually stops a company paying: timing.ExplainerAsset Turnover: Diagnosing Capital That Is AsleepNet sales divided by net fixed assets is one of the easiest ratios to compute and one of the least comparable. The same retailer scored 10× before the lease standard and 1.39× after it — same shops, same sales, same year.ExplainerDebt-to-Equity Ratio Explained: Formula and Healthy LevelsThe debt-to-equity ratio measures leverage. Learn the formula, what a healthy level looks like, and how the personal version differs from the company one.