Free tool · Debt coverage
DSCR calculator.
Enter the property's NOI and the loan terms — see the debt service coverage ratio and debt yield a lender screens on, instantly. No login.
Deal & loan
DSCR
1.10×
lender floor 1.20×
Debt yield
8.3%
NOI ÷ loan
Below the typical 1.20× lender floor.
What DSCR measures
The debt service coverage ratio is net operating income divided by annual debt service — how many times over the property's income covers the loan payment. At 1.00× income exactly equals the payment; above it there's a cushion, below it the deal can't carry the debt from operations. Lenders quote a minimum, most commonly 1.20×–1.25× for stabilized multifamily, and size the loan so coverage stays above it.
Debt yield — NOI ÷ loan — is the companion number a credit committee watches because, unlike DSCR and LTV, it ignores rate and amortization entirely: it's the unlevered cash return the lender would earn if it had to take the asset back. Agency lenders often floor it around 8%–10%.
Two conventions to know. Lenders size DSCR on the fully-amortizing payment even when the loan is interest-only, so an IO period improves in-place cash flow without loosening the sizing. And the coverage denominator is sometimes NCF — NOI minus replacement reserves — which is stricter; this tool uses NOI, the more common screening basis.
What DSCR do multifamily lenders require?
Most stabilized multifamily loans require a minimum DSCR of 1.20× to 1.25×. Bridge and value-add debt can go lower on in-place income when there is a clear path to stabilization; construction and higher-risk deals require more.
Is DSCR calculated on NOI or NCF?
Both are used. NOI is the common screening basis. Agency lenders (Fannie DUS, Freddie) often use NCF — NOI minus replacement reserves — which is stricter. This calculator uses NOI.
Does an interest-only loan improve DSCR?
It improves in-place cash flow, but lenders typically size coverage on the fully-amortizing payment regardless, so IO rarely loosens the loan amount they will offer.
A single-year screening ratio: NOI over annual debt service, with debt service on the standard amortizing payment (or interest-only when toggled). New to the metric? Read what DSCR do lenders want. Not investment advice.
See it on a real deal.
In Nivora this runs off your actual rent roll and T-12 — the full monthly model, reconciled to the penny. See it live on a fictional sample deal.