# Debt Service Coverage Ratio (DSCR) Calculator for Commercial Real Estate

Calculate commercial real estate DSCR, annual debt service, debt yield, LTV, cash flow after debt, and maximum supported loan amount with lender-style assumptions.

Canonical URL: https://leaselineage.com/resources/debt-service-coverage-ratio-calculator

Markdown URL: https://leaselineage.com/resources/debt-service-coverage-ratio-calculator.md

Type: Free tool

Published: 2026-08-16

Last modified: 2026-08-16

Audience: Commercial real estate investors, borrowers, brokers, lenders, analysts, and property owners

## Summary

Test whether entered property NOI covers modeled loan payments, compare the result with a target DSCR, stress interest rates and NOI, and copy or print a transparent deal summary.

## How to calculate commercial real estate DSCR

Debt service coverage ratio compares property cash flow with the annual principal-and-interest obligation. This tool divides entered net operating income by modeled annual debt service and keeps the loan-payment assumptions visible beside the result.

- DSCR equals annual net operating income divided by annual debt service
- A 1.00x result means modeled NOI equals modeled annual debt service
- Debt yield equals NOI divided by the entered loan amount
- Cash flow after debt equals NOI less modeled annual debt service

Sources:
- [OCC Comptroller's Handbook: Commercial Real Estate Lending](https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf)

## Model the debt structure explicitly

Loan amount, rate, amortization, and interest-only structure can materially change annual debt service. The calculator supports amortizing and interest-only scenarios, then estimates the maximum supported loan at the entered target DSCR and financing assumptions.

- Amortizing debt service uses the entered interest rate and amortization period
- Interest-only debt service uses loan amount multiplied by the annual rate
- Maximum supported debt service equals NOI divided by the target DSCR
- The sensitivity table shows how NOI and interest-rate changes affect coverage

Sources:
- [FDIC: Commercial Real Estate Lending examination guidance](https://www.fdic.gov/risk-management-manual-examination-policies/commercial-real-estate-lending)

## Treat the result as a screening model

A lender may normalize income, vacancy, operating expenses, reserves, replacement costs, and loan terms differently. DSCR is one underwriting measure and does not replace a lender's complete credit, collateral, guarantor, environmental, appraisal, or legal review.

- Confirm how the lender defines stabilized NOI and annual debt service
- Include all required property debt when the lender's test requires it
- Stress occupancy, rent, expenses, rates, and refinance assumptions
- Copy or print the generated assumptions with the result so the ratio is auditable

## Key takeaways

- Commercial real estate DSCR can be expressed as net operating income divided by annual debt service.
- Debt yield can be expressed as net operating income divided by loan amount.
- The appropriate DSCR depends on loan structure, amortization, cash-flow stability, property risk, and lender policy.
- A transparent DSCR estimate should disclose the NOI, loan amount, interest rate, amortization, payment structure, and target ratio used.

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