How is DSCR (Debt Service Coverage Ratio) Calculated?
The DSCR is basic algebra containing two knowns: Annual Net Operating Income and Annual Loan Payments, and one unknown – the DSCR.
NOI - Annual Net Operating Income (Gross Income less all expenses)
Annual Debt Service - Annual Loan Payments (principal and Interest)
Annual Net Operating Income / Annual Loan Payments = DSCR
Example: Annual Net Operating Income: $136,000 /annual debt Service $96,000 = DSCR 1.42
Multifamily Mortgage Bankers and Brokers since 1997
Get Your Free Multifamily Loan Quote
HOT SHEET
10 Year Fixed at 5.30%
2 Week Close Emergency Bridge Loan
*Please Call for Details