Determine your business's financial health and loan eligibility with our Debt Service Coverage Ratio (DSCR) Calculator. Quickly assess if your Net Operating Income can cover annual debt obligations, a critical metric for lenders and investors.
Formula:
The Debt Service Coverage Ratio (DSCR) is a vital financial metric that compares a company's (or property's) Net Operating Income (NOI) to its total annual debt service (principal and interest payments).
Formula:
DSCR = Net Operating Income (NOI) / Total Debt Service
Where:
- Net Operating Income (NOI) = Your business's annual revenue minus operating expenses (excluding interest, taxes, depreciation, and amortization).
- Total Debt Service = Your total annual principal and interest payments on all outstanding debt.