Rental Debt Service Coverage Capacity Calculator
Convert entered annual NOI and an entered DSCR hurdle into a loan-capacity scenario, including an NOI stress.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Divide nonnegative NOI by the entered coverage hurdle for annual debt service, then value its monthly payments as an annuity. Repeat after the entered NOI reduction.
Annual debt-service capacity=max(0,NOI)/entered DSCR; loan PV=(annual capacity/12)×annuityPV
Worked example
NOI 15000 and an entered DSCR 1.25 allow 12000/year debt service. At zero interest over 120 months, modeled loan capacity is 120000.
Assumptions and input details
DSCR hurdle is a user scenario, not an approved lender standard. NOI excludes debt service and capital reserves; enter a consistently defined amount. Fixed nominal rate, end-month payments, no balloon, fees, loan-to-value constraint, guarantee, reserve requirement or approval process. Negative NOI yields zero modeled borrowing capacity and is still shown for comparison coverage. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
References: OCC: NOI and debt service coverage concepts
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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