DSCR Calculator

DSCR compares estimated NOI against annual debt payments so you can see how much income cushion a deal has.

DealPrism shows DSCR with the same underwriting assumptions used for cash flow so investors can judge coverage, not just raw rent.

Stronger result: Healthy DSCR gives the deal breathing room above the mortgage payment. Many lenders want a buffer, not a bare pass, because vacancy, taxes, and insurance can move quickly.

Weaker result: Weak DSCR usually means either rent is too soft for the debt load or the purchase price and rate combination is too aggressive. A deal near 1.0 has almost no room for underwriting drift.

• Use NOI, not gross rent, in the numerator.
• Check how much rate movement changes DSCR.
• Treat lender thresholds as minimums, not proof of safety.

If annual NOI is $15,000 and annual debt service is $12,000, the estimated DSCR is 1.25.

This is the point of an underwriting calculator: one number should always be traceable back to its underlying assumptions. If the output changes after a small rent, expense, or financing update, that is not noise. It is the deal showing you where the real sensitivity lives.

No serious rental property decision should rely on a single output. A cap rate without financing context, a mortgage payment without operating expenses, or a DSCR without rent validation can all point investors in the wrong direction.

The practical goal is not to memorize formulas. It is to understand which assumption changed, whether that change is realistic, and how the full deal behaves once the inputs are connected.