Metrics
What is DSCR, and why do lenders care?
Updated 2026-07-02
DSCR. Debt Service Coverage Ratio, asks a simple question: does the property earn enough to pay its own mortgage? It's the number a DSCR lender leans on hardest.
DSCR = Net Operating Income ÷ Annual Debt Service
NOI is income after operating expenses but before the mortgage. Debt service is the annual principal + interest.
A DSCR of 1.00 means the property exactly covers its mortgage. Below 1.0 it loses money each month; above 1.0 it has a cushion. Most lenders want at least 1.20 to 1.25.
Try it
Annual NOI
Annual debt service
DSCR
,
Target ranges
Good
≥ 1.25
Workable
1.00 to 1.24
Below
< 1.00
These are BuyBox's defaults, set your own in your buy box. See also cash-on-cash and cap rate.