DSCR Loan Calculator – Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR) is the single most important metric lenders use when underwriting a multifamily loan. A DSCR above 1.25x generally satisfies agency debt requirements, while anything below 1.0x signals negative cash flow.

Use the calculator below to stress-test your deal at different loan sizes, rates, and amortization periods.

How is DSCR calculated?

DSCR = Net Operating Income ÷ Annual Debt Service

Net Operating Income (NOI) is gross potential rent minus vacancy and operating expenses (excluding debt service). Annual Debt Service is the total principal and interest payments made over twelve months.

What DSCR do lenders require?

• Fannie Mae / Freddie Mac: Typically 1.25x minimum
• Bridge lenders: Often 1.10x or interest-only
• Life companies: Can require 1.30x–1.40x

Contact TMG if you need help structuring debt for a multifamily acquisition or refinance.