Free Calculator
DSCR Calculator
Debt service coverage ratio is the lender's core test: how many times over does the property's net operating income cover its mortgage payments?
Results
- Monthly payment
- $3,078
- Annual debt service
- $36,939
- DSCR
- 1.16
- NOI cushion before DSCR 1.00
- 13.7%
How far NOI can fall before income stops covering debt.
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Valuation, comparables, risk flags, stress tests and your maximum offer — analyzed with AI.
Analyze the property with AIThe formula
DSCR = Net Operating Income ÷ Annual Debt Service
A DSCR of 1.00 means income exactly covers the mortgage with nothing left for surprises.
Worked example
- NOI is $42,780.
- A $580,000 mortgage at 4.9% over 30 years costs about $3,140 per month, or $37,680 per year.
- DSCR = $42,780 ÷ $37,680 = 1.14.
- Many commercial lenders want 1.20 to 1.30, so this loan amount would likely need to shrink.
How to read the result
DSCR is a cushion measurement. At 1.25, NOI can fall 20% before the property stops covering its own debt.
Because the ratio depends on the interest rate, a renewal at a higher rate can push a healthy property under water even with unchanged rents.
If your DSCR is thin, the honest options are a larger down payment, a lower price, longer amortisation, or a credible plan to raise NOI.
Frequently asked
What DSCR do lenders require?
Requirements vary by lender, program and asset class, so confirm with your lender or broker. Underwriting to at least 1.20 gives you room for vacancy and repair surprises even when a program allows less.
Does DSCR use gross rent?
No. It uses NOI, so vacancy and operating expenses are already deducted. Using gross rent produces a flattering number that no lender will accept.
A calculator answers one question. PropertyEdge makes the whole decision.
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Ontario benchmarks by city
Local prices, rents, property tax and land transfer tax — the inputs this calculator needs.
- See Toronto benchmarks
- See Hamilton benchmarks
- See Mississauga benchmarks
- See Ottawa benchmarks
- See London benchmarks
- See Kitchener-Waterloo benchmarks
- See Burlington benchmarks
- See Oakville benchmarks
- See Brampton benchmarks
- See Niagara benchmarks
- See Guelph benchmarks
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PropertyEdge provides analysis and estimates for informational purposes only. It is not investment, tax, legal or appraisal advice, and no return or investment outcome is guaranteed. Estimates are modelled from the assumptions shown and must be verified against leases, inspections, tax bills and municipal records before you make an offer.