Debt Service Coverage Ratio Calculator (DSCR)


DSCR stands for debt service coverage ratio Calculator

SKU: HVREIA002 Category:


Our friends at TEG Federal Credit Union have made this Debt Service Coverage Ratio (DSCR) calculator available to all of our members. It is a metric commonly used in commercial lending (in addition to personal credit scoring) to establish whether the borrower’s investment makes sense from an economic point of view.  In contrast to private purchases, commercial mortgages are taken with one main objective in mind: to generate income. For example, you, as a real estate investor, might consider buying a building in order to rent out the apartments. The rent paid by the tenants will have to cover the loan you’ve taken (with interest) and expenses associated with the property and provide you with some profit. Your lender will be interested in ensuring the net operating income is enough to cover the mortgage payment.

File Notes:
Only fill-in the highlighted cells.  (Note:  Formulas are contained in the non-highlighted cells and will automatically calculate  the information inputted.)