DSCR Calculator
DSCR (debt service coverage ratio) is NOI divided by annual debt service. Lenders use it to size loans — it tells you how much cushion the property's income has over its mortgage payments. Below 1.0 means the property doesn't cover its own debt.
DSCR
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Most lenders want 1.25x or higher. 1.0x = breakeven; below 1.0x the property can't cover its mortgage from operations.
FAQ
What DSCR do lenders require?
Commonly 1.25x for stabilized commercial/multifamily, though it varies by lender and asset. DSCR-loan products for rentals sometimes allow ~1.0–1.2x.
How do I raise DSCR?
Increase NOI (rents, expense control) or lower debt service (larger down payment, better rate/term). PropHunt stress-tests DSCR against rate shocks on every deal.