Debt Service Coverage Calculator

Calculate DSCR to evaluate ability to cover debt payments from operating income.

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

Income & Debt Data

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$

Debt Breakdown (Optional)

$
$

Additional Factors

$
x

Debt Service Coverage Ratio

1.43x

Adequate - Meets typical requirements

Cash After Debt
$150K
Risk Level
Medium Risk

Coverage Analysis

Net Operating Income$500K
Annual Debt Service$350K
DSCR1.43x
DSCR (after CapEx)1.29x

Lender Requirements

Required Minimum DSCR1.25x
Required NOI (at min DSCR)$438K
NOI Excess$63K (+14.3%)
Max Debt Service (at current NOI)$400K
Additional Debt Capacity$50K

Additional Ratios

Break-Even NOI$350K
NOI Cushion$150K (30.0%)
Interest Coverage2.50x
Fixed Charge Coverage1.25x
Max NOI Decline (to break-even)30.0%

NOI Sensitivity

NOI -20%
1.14xFails
NOI -10%
1.29xPasses
NOI +0%
1.43xPasses
NOI +10%
1.57xPasses
NOI +20%
1.71xPasses

Formula: DSCR = NOI / Annual Debt Service = $500K / $350K = 1.43x

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sources

  • β€’Reserve Bank of India (RBI) β€” Financial regulations, lending rates, and monetary policy guidelines. rbi.org.in
  • β€’Consumer Financial Protection Bureau (CFPB) β€” Consumer finance guidelines, mortgage and loan disclosure standards. consumerfinance.gov
  • β€’Securities and Exchange Board of India (SEBI) β€” Investment and securities market regulations. sebi.gov.in
  • β€’Investopedia β€” Financial formulas, definitions, and educational content. investopedia.com

For a complete list of all references used across the site, visit our full sources page.

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Editorial Note

MyCalcBuddy Editorial Team

This page is maintained as an educational calculator reference.

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Formula Source: Fundamentals of Financial Management

by Brigham & Houston

Γ°ΕΈβ€β€žLast reviewed: May 2026
Γ’Ε“β€œFormula checks are based on standard references and internal QA review.