What DSCR do lenders typically require?

Most lenders want a DSCR of at least 1.2-1.25, meaning the property's income exceeds its debt payments by 20-25%. A DSCR below 1.0 means the income doesn't fully cover the debt.

DSCR Calculator

Calculate the Debt Service Coverage Ratio for a rental or commercial property.

Formula v1.0.0GlobalMethodologydscr-v1

How this is calculated

DSCR = Net operating income ÷ Annual debt service

About this calculator

The DSCR calculator divides a property's annual net operating income by its annual debt service (loan payments) to produce the Debt Service Coverage Ratio lenders use to assess whether a property's income can support its financing.

Worked example

₹12,00,000 NOI, ₹9,00,000 annual debt service

Result: DSCR = 1.33

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What DSCR do lenders typically require?

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