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    Free Tool

    DSCR Calculator

    Calculate your Debt Service Coverage Ratio and understand how income compares with debt obligations.

    C$200,000
    C$10,000C$2,000,000

    Revenue minus operating expenses (before debt payments and taxes)

    C$120,000
    C$10,000C$2,000,000

    Total annual principal + interest payments on all business debt

    Formula: net operating income ÷ annual debt service. A result above 1.0 means the income figure entered is greater than the debt-service figure entered.

    Your DSCR

    1.67x

    Income exceeds debt service

    Based on the figures entered, net operating income is 1.67 times annual debt service.

    Scenarios You Can Model

    • 1.Increase revenue through new customers, pricing, or additional services
    • 2.Reduce operating expenses to improve net operating income
    • 3.Refinance existing debt at lower rates or longer terms
    • 4.Pay off smaller debts to lower total debt service

    This result is arithmetic, not an eligibility assessment. Financing partners may define income and debt service differently and apply their own criteria.

    Methodology

    DSCR = net operating income ÷ annual debt service. Values at or below 1.00 mean NOI does not cover scheduled debt service in the scenario you entered.

    • NOI and debt service are annual figures you supply.
    • Partners set their own DSCR floors by property type and occupancy. This page does not publish a cutoff.
    • The ratio is a screening math check, not an appraisal or approval.

    Closing costs and reserves are excluded unless you reduce NOI or raise debt service to reflect them. Formula reviewed 2026-08-28.

    Frequently Asked Questions

    A DSCR above 1.0 means the income entered exceeds the debt service entered, while a result below 1.0 means it does not. Financing partners set their own thresholds and may calculate income or debt service differently.

    A financing partner may use DSCR alongside credit, collateral, liquidity, property and business factors. The ratio is not an approval prediction, and partners may define its inputs differently.

    Net operating income (NOI) is your total revenue minus operating expenses, but before debt payments and income taxes. It includes rent, payroll, utilities, and other operating costs, but excludes loan principal/interest payments, depreciation, and taxes.

    Related financing guides

    Use these guides to understand the assumptions and financing choices behind the numbers.

    Commercial Real Estate Loan RatesCommercial Real Estate Loan Requirements

    Want to Request a Financing Introduction?

    Submitting our initial form does not itself run a credit check or guarantee an offer. A third-party financing partner controls eligibility and terms.

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