Property ownership
Property debt service coverage
Measure stated NOI against scheduled annual debt service.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
DSCR=NOI/annual debt service.
Use NOI before financing, income taxes and depreciation. Debt service includes scheduled principal and interest. No lender eligibility, covenant interpretation or credit recommendation.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Annual net operating income (currency/year): Annual operating income less operating expenses before debt, depreciation and income tax.
- Scheduled annual debt service (currency/year): Annual scheduled principal plus interest from statements.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Debt service coverage ratio is 1.50 × for the illustrative inputs below.
Example inputs
- Annual net operating income: 36,000.00 currency/year
- Scheduled annual debt service: 24,000.00 currency/year
- Debt service coverage ratio
- 1.50 ×
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Measure stated NOI against scheduled annual debt service.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.