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DSCR / NOI analyzer

Blend property NOI with portfolio obligations to confirm coverage targets.

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DSCR / NOI analyzer

Stack property NOI against debt service and portfolio context to confirm coverage.

Calculation notes

Methodology for the dscr / noi analyzer

Calculate the Debt Service Coverage Ratio (DSCR) for rental and investment properties — the key metric lenders use for income-property qualification.

See whether your property generates enough net operating income to cover the mortgage payment with the lender-required buffer (typically 1.10x to 1.25x).

Model different rent scenarios, vacancy rates, and expense ratios to understand DSCR sensitivity to market conditions.

Use it before purchasing an investment property to confirm the numbers work for both you and the lender.

Inputs to check

  • Net operating income
  • Monthly debt payments
  • Property expenses

Assumptions

  • DSCR = Net Operating Income / Total Debt Service (mortgage payment).
  • Lender minimums range from 1.10x to 1.25x depending on property type, location, and borrower strength.
  • Vacancy, maintenance, and management are expense deductions from gross rent even if not currently incurred.
  • Subject-property rental income must be supported by market rent data, appraisal, or signed leases.

How this calculator works

Calculate the Debt Service Coverage Ratio (DSCR) for rental and investment properties — the key metric lenders use for income-property qualification.

See whether your property generates enough net operating income to cover the mortgage payment with the lender-required buffer (typically 1.10x to 1.25x).

Model different rent scenarios, vacancy rates, and expense ratios to understand DSCR sensitivity to market conditions.

Use it before purchasing an investment property to confirm the numbers work for both you and the lender.

Inputs you will need

  • Net operating income
  • Monthly debt payments
  • Property expenses

Assumptions and limitations

  • DSCR = Net Operating Income / Total Debt Service (mortgage payment).
  • Lender minimums range from 1.10x to 1.25x depending on property type, location, and borrower strength.
  • Vacancy, maintenance, and management are expense deductions from gross rent even if not currently incurred.
  • Subject-property rental income must be supported by market rent data, appraisal, or signed leases.

Example scenarios

Single-family rental DSCR

$3,000/month rent, $800/month expenses, NOI = $2,200. Mortgage: $1,800. DSCR = $2,200/$1,800 = 1.22x — passes typical 1.10x minimum.

Multi-unit with higher expenses

Triplex at $5,000/month gross, 35% expense ratio ($1,750), NOI = $3,250. Mortgage: $2,800. DSCR = $3,250/$2,800 = 1.16x — marginal. Reducing expenses or increasing rent improves coverage.

Vacancy impact on DSCR

Same property with 8% vacancy (vs 5%): gross drops to $4,600, expenses $1,610, NOI = $2,990. DSCR drops from 1.16x to 1.07x — below most lender minimums.

Rate increase stress test

At 4.50%, DSCR is 1.25x. If rates rise to 5.50% at renewal, payment increases $280/month, DSCR drops to 1.12x. Still passes but with less margin.

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Frequently asked questions

What is DSCR and what minimum do lenders require?

DSCR = Net Operating Income / Total Debt Service. NOI is gross rent minus operating expenses (taxes, insurance, maintenance, vacancy, management). Most lenders require 1.10x to 1.25x — the property generates 10-25% more income than needed for the mortgage.

What expenses are included?

Lenders include: property taxes, insurance, utilities (if owner-paid), maintenance (5-10% of rent), vacancy (3-5%), management (5-10%), and condo fees. Mortgage payments, capital improvements, and depreciation are NOT operating expenses.

How does DSCR differ from GDS/TDS?

DSCR measures the property's ability to cover its own debt from rental income. GDS/TDS measures the borrower's ability to cover housing costs from personal income. Investment properties use DSCR primarily. Owner-occupied with suite must pass both.

Can projected rental income be used?

Yes. Lenders accept market rent appraisals or appraiser letters. For properties with existing tenants, current leases and rent rolls are used. For vacant properties, the lower of market rent or actual below-market lease rent is typically used.

What if DSCR is below the minimum?

Options: increase down payment (reduces mortgage payment), find higher-rent property, negotiate lower price, reduce expenses (self-manage), or seek lender with lower DSCR minimum (some go to 1.00x). Supplement with personal income if ratios have room.