DSCR at Breakeven: $12,000 NOI / $12,000 Debt
When NOI equals annual debt service ($12,000 each), the DSCR is exactly 1.0, the breakeven point.
How to use this tool
- Enter net operating income (noi) and annual debt service in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your dscr and the full breakdown beneath it.
Calculate what a DSCR of 1.0 means — the property's income just covers its debt payments with no cushion.
Frequently asked questions
- What DSCR do lenders require?
- Most commercial and DSCR mortgage lenders require a minimum DSCR of 1.20 to 1.25. A DSCR below 1.0 means the property operates at a loss after debt payments.
- How do I improve my DSCR?
- Increase NOI (raise rents, reduce vacancies, cut expenses) or reduce debt service (larger down payment, better interest rate, longer amortization period).