DSCR Calculator

The Debt Service Coverage Ratio (DSCR) is the primary metric used in private credit and commercial lending to assess a property's ability to cover its debt obligations.

Property Income

Annual Net Operating Income ($)

Debt Obligations

Annual Debt Service (Principal & Interest) ($)

Debt Service Coverage Ratio

Understanding DSCR in Private Credit

Formula: DSCR = Net Operating Income / Total Debt Service
Meaning: A DSCR of 1.0x means the property generates exactly enough income to pay its debt. A DSCR of 1.25x means the property generates 25% more income than needed for debt service (a standard safety buffer).
Mezzanine Lending: When providing mezzanine debt, it is critical to calculate the "Global DSCR" which includes the senior bank debt service plus your proposed mezzanine debt service.