Commercial Mortgage DSCR Calculator
Commercial lenders price your loan on DSCR — net operating income divided by annual debt service. Below 1.20 and most lenders pass. This calculator checks your DSCR, max loan size, and stress test at higher rates.
| Effective gross income | — |
| NOI | — |
| Monthly P&I | — |
| Annual debt service | — |
| DSCR result | — |
| Lender minimum | — |
| Max supportable loan at min DSCR | — |
DSCR (debt service coverage ratio) = net operating income ÷ annual debt service. Commercial lenders typically require 1.20-1.25× minimum for stabilized properties. A DSCR of 1.30× means the property generates 30% more cashflow than required to cover the mortgage.
DSCR Formula
NOI = effective gross income − operating expenses (taxes, insurance, repairs, management, utilities — NOT mortgage). Annual debt service = monthly P&I × 12. DSCR = NOI ÷ Annual Debt Service.
Lender Minimums by Property Type
Multifamily (5+ units): 1.20-1.25×. Office/retail: 1.25-1.30×. Hotel/special-purpose: 1.40-1.50×. Construction/lease-up: lender may waive DSCR with strong sponsor and reserves.
Stress Testing
Smart underwriters re-run DSCR at higher rates (rate stress) and lower NOI (vacancy stress). If DSCR drops below 1.10× at +200 bps or 20% vacancy increase, the deal is fragile.
Improving DSCR
Three levers: increase NOI (rent bumps, expense cuts), reduce loan size (more equity), or extend amortization (lower payment). Longer amort = lower payment but more lifetime interest.
Last updated May 2026. Sources: Freddie Mac SBL, Fannie Mae DUS.