#dscr-calculator-wrapper .calc-header {
text-align: center;
margin-bottom: 30px;
}
#dscr-calculator-wrapper .calc-header h2 {
color: #2c3e50;
margin-bottom: 10px;
}
#dscr-calculator-wrapper .calc-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
#dscr-calculator-wrapper .calc-group {
flex: 1;
min-width: 250px;
display: flex;
flex-direction: column;
}
#dscr-calculator-wrapper label {
font-weight: 600;
margin-bottom: 8px;
color: #34495e;
font-size: 14px;
}
#dscr-calculator-wrapper input {
padding: 12px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
transition: border-color 0.3s;
}
#dscr-calculator-wrapper input:focus {
border-color: #3498db;
outline: none;
}
#dscr-calculator-wrapper .calc-btn {
width: 100%;
padding: 15px;
background-color: #2980b9;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
#dscr-calculator-wrapper .calc-btn:hover {
background-color: #1a5276;
}
#dscr-calculator-wrapper #dscr-result-box {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border-left: 5px solid #2980b9;
display: none;
}
#dscr-calculator-wrapper .result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
#dscr-calculator-wrapper .result-final {
margin-top: 20px;
padding-top: 15px;
border-top: 1px solid #ddd;
font-size: 24px;
font-weight: bold;
text-align: center;
color: #2c3e50;
}
#dscr-calculator-wrapper .dscr-badge {
display: inline-block;
padding: 5px 15px;
border-radius: 20px;
color: white;
font-size: 14px;
vertical-align: middle;
margin-left: 10px;
}
#dscr-calculator-wrapper .article-content {
margin-top: 50px;
line-height: 1.6;
color: #444;
}
#dscr-calculator-wrapper .article-content h3 {
color: #2c3e50;
margin-top: 25px;
}
#dscr-calculator-wrapper .article-content ul {
padding-left: 20px;
}
#dscr-calculator-wrapper .article-content li {
margin-bottom: 10px;
}
function calculateDSCR() {
// Get values
var rentIncome = parseFloat(document.getElementById('annualRentalIncome').value);
var otherIncome = parseFloat(document.getElementById('annualOtherIncome').value);
var expenses = parseFloat(document.getElementById('annualExpenses').value);
var debtService = parseFloat(document.getElementById('annualDebtService').value);
// Validation
if (isNaN(rentIncome) || isNaN(expenses) || isNaN(debtService)) {
alert("Please fill in all required fields (Rent, Expenses, and Debt Service) with valid numbers.");
return;
}
if (debtService = 1.25) {
badge.style.backgroundColor = '#27ae60';
badge.innerText = 'Strong';
message.innerText = 'This property generates sufficient cash flow to cover debt obligations with a safety margin. Most lenders will approve this.';
message.style.color = '#27ae60';
} else if (dscr >= 1.0) {
badge.style.backgroundColor = '#f39c12';
badge.innerText = 'Breakeven / Risk';
message.innerText = 'The property covers its debt, but with little room for error or vacancies. Lenders may view this as risky.';
message.style.color = '#d35400';
} else {
badge.style.backgroundColor = '#c0392b';
badge.innerText = 'Negative Cash Flow';
message.innerText = 'The property does not generate enough income to cover the debt payments. You will be paying out of pocket.';
message.style.color = '#c0392b';
}
}
DSCR Calculator (Debt Service Coverage Ratio)
Calculate the cash flow health of your investment property for lenders.
Net Operating Income (NOI):
$0.00
Total Annual Debt Service:
$0.00
DSCR Score: 0.00
What is Debt Service Coverage Ratio (DSCR)?
The Debt Service Coverage Ratio (DSCR) is a critical financial metric used by real estate investors and lenders to analyze the profitability of an income-producing property. Unlike standard residential mortgages that focus on the borrower's personal income, DSCR loans focus primarily on the cash flow generated by the property itself.
Simply put, DSCR measures a property's ability to cover its debt obligations (mortgage payments) with its rental income.
How the DSCR Formula Works
The formula for calculating DSCR is relatively straightforward:
DSCR = Net Operating Income (NOI) / Total Debt Service
- Net Operating Income (NOI): This is your annual revenue (rent + other income) minus all operating expenses (taxes, insurance, HOA, maintenance, management fees). Note that NOI does not include the mortgage payment itself.
- Total Debt Service: This constitutes the total principal and interest payments made on the loan over one year.
Interpreting Your DSCR Score
Understanding the resulting number is vital for securing financing and ensuring a healthy investment portfolio:
- DSCR > 1.25: This is the gold standard for most lenders. It indicates that the property generates 25% more income than is required to pay the debt, providing a safety net for vacancies or repairs.
- DSCR = 1.00: This represents a "breakeven" point. The income exactly matches the debt payments. While you aren't losing money, you aren't making a profit, and any unexpected expense will push you into the red.
- DSCR < 1.00: A ratio below 1 means the property has negative cash flow. The rental income is insufficient to cover the mortgage, requiring the investor to use personal funds to pay the difference.
Why Lenders Care About DSCR
Lenders use DSCR to assess risk. A higher ratio means lower risk for the lender because the property is self-sustaining. Consequently, a high DSCR can often help investors secure lower interest rates, higher loan-to-value (LTV) ratios, or qualify for loans without verifying personal income.