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How this calculator works
Yearly debt service = monthly payment × 12, using the standard amortization formula. DSCR = net operating income ÷ debt service. Maximum loan = the loan whose debt service equals NOI ÷ minimum DSCR.
Frequently asked questions
What DSCR do lenders want?
Many commercial lenders look for roughly 1.2–1.35 or more, meaning income is 20–35% above loan payments. Requirements vary by lender, country and property type.
What counts as net operating income?
Revenue minus operating expenses, before loan payments, depreciation and income tax.
Results are estimates based on the numbers you enter and simplified assumptions. They are not financial advice. See our disclaimer.