Bridge

Tools

DSCR Loan Qualifier

Analyze your deal's DSCR strength and take the first step toward securing your funding.

Net Operating Income

Use the net income from your last year's tax return. You can add back taxes, depreciation, and any one-time capital expenditures.

Total Current Annual Debt Service$0

Current DSCR

Calculate Current Annual Debt Service

List all existing property-related loans. The calculator automatically sums the annual debt service for all loans to determine your current DSCR.

Calculate Hypothetical DSCR by Adding New Loan Scenarios

Enter hypothetical loan terms to see how a new loan would impact annual debt service and DSCR.

For preliminary planning only. DSCR estimates are based on the figures you entered, so validate terms with your lender. Not an offer of credit.

Frequently asked questions

What is DSCR and how is it calculated?

The debt service coverage ratio (DSCR) is net operating income divided by annual debt service: DSCR = NOI ÷ total yearly loan payments. A DSCR of 1.50x means the property earns $1.50 of operating income for every $1.00 of debt payments.

What is a good DSCR for a commercial real estate loan?

Most commercial lenders look for a DSCR of at least 1.20x to 1.25x; hotels often need 1.30x or better because their income is more variable. Below 1.00x the property does not cover its own debt payments.

How is annual debt service calculated for each loan?

Each loan's monthly payment is computed from its amount, interest rate, and amortization period using the standard amortization formula, then multiplied by 12. The tool sums current loans, hypothetical loans, or both to produce current, proposed, and combined DSCRs.

Can I model a new loan on top of existing debt?

Yes. Enter your existing loans and the hypothetical new loan, and the tool reports the combined DSCR so you can see whether the property still qualifies after taking on the additional debt.