Debt service coverage ratio.

DSCR (Debt Service Coverage Ratio) measures whether a property or business generates enough income to cover debt payments. Formula: NOI / Total Debt Service. DSCR of 1.0 means just covering debt, 1.25 is acceptable to most lenders, 1.5+ is comfortable. Below 1.0 means losing money each period.

Example: rental property NOI 24,000/year, mortgage payments 18,000/year. DSCR = 1.33x (6,000 cushion). Most commercial lenders require minimum 1.20-1.25x DSCR. BTL: typically 1.25x for individuals at 5.5% stress rate, 1.45x for limited companies. Higher LTV requires higher DSCR.

DSCR loans (no income verification, qualify on property cash flow) growing rapidly - useful for self-employed investors and portfolio landlords. Calculation uses gross rent × occupancy assumption (usually 75-90%) minus operating expenses (taxes, insurance, maintenance, management). Lender NOI typically lower than your projection - they apply conservative haircuts.

Run it with sensible defaults

Using net operating income of 24,000, total annual debt service of 18,000, the calculation works out to 1.33x. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Net Operating Income (annual) and Total Annual Debt Service — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

DSCR = NOI / total debt service. Above 1.25 acceptable to most lenders. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.