.dscr-calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #f9f9f9;
padding: 30px;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0,0,0,0.1);
border: 1px solid #e0e0e0;
}
.dscr-calculator-container h2 {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 28px;
}
.dscr-row {
display: flex;
flex-wrap: wrap;
margin: 0 -10px;
}
.dscr-col {
flex: 1;
padding: 0 10px;
min-width: 300px;
}
.dscr-input-group {
margin-bottom: 20px;
}
.dscr-input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #444;
}
.dscr-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
transition: border-color 0.3s;
}
.dscr-input-group input:focus {
border-color: #0073aa;
outline: none;
}
.dscr-section-title {
font-size: 18px;
color: #0073aa;
border-bottom: 2px solid #0073aa;
padding-bottom: 5px;
margin-top: 10px;
margin-bottom: 20px;
font-weight: bold;
}
.dscr-btn {
display: block;
width: 100%;
background: #0073aa;
color: white;
padding: 15px;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
margin-top: 20px;
transition: background 0.3s;
}
.dscr-btn:hover {
background: #005177;
}
.dscr-result-box {
background: #fff;
padding: 25px;
border-radius: 8px;
margin-top: 30px;
border: 1px solid #ddd;
display: none;
}
.dscr-metric {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px dashed #eee;
}
.dscr-metric:last-child {
border-bottom: none;
}
.dscr-metric-label {
font-weight: 600;
color: #555;
}
.dscr-metric-value {
font-weight: bold;
color: #2c3e50;
}
.dscr-final-score {
text-align: center;
font-size: 42px;
font-weight: 800;
margin: 20px 0;
color: #2c3e50;
}
.dscr-badge {
display: inline-block;
padding: 5px 15px;
border-radius: 20px;
color: white;
font-weight: bold;
font-size: 14px;
margin-top: 5px;
}
.bg-success { background-color: #46b450; }
.bg-warning { background-color: #ffb900; color: #333; }
.bg-danger { background-color: #dc3232; }
@media (max-width: 600px) {
.dscr-col { flex: 100%; }
}
function calculateDSCR() {
// Get Income Inputs
var rent = parseFloat(document.getElementById('annualRent').value) || 0;
var otherInc = parseFloat(document.getElementById('otherIncome').value) || 0;
// Get Expense Inputs
var taxes = parseFloat(document.getElementById('propertyTaxes').value) || 0;
var insurance = parseFloat(document.getElementById('insurance').value) || 0;
var maintenance = parseFloat(document.getElementById('maintenance').value) || 0;
var management = parseFloat(document.getElementById('managementFees').value) || 0;
var hoa = parseFloat(document.getElementById('hoaUtilities').value) || 0;
// Get Debt Input
var debtService = parseFloat(document.getElementById('annualPrincipalInterest').value) || 0;
// Calculations
var grossIncome = rent + otherInc;
var totalExpenses = taxes + insurance + maintenance + management + hoa;
var noi = grossIncome – totalExpenses;
// Avoid division by zero
var dscr = 0;
if (debtService > 0) {
dscr = noi / debtService;
}
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
// Update Result DOM
document.getElementById('resGrossIncome').innerHTML = formatter.format(grossIncome);
document.getElementById('resExpenses').innerHTML = formatter.format(totalExpenses);
document.getElementById('resNOI').innerHTML = formatter.format(noi);
document.getElementById('resDebt').innerHTML = formatter.format(debtService);
var ratioEl = document.getElementById('resRatio');
ratioEl.innerHTML = dscr.toFixed(2);
// Logic for Verdict
var badgeEl = document.getElementById('resBadge');
var msgEl = document.getElementById('resMessage');
var resultBox = document.getElementById('dscrResult');
resultBox.style.display = 'block';
// remove old classes
badgeEl.classList.remove('bg-success', 'bg-warning', 'bg-danger');
if (debtService === 0) {
badgeEl.innerHTML = "Invalid Debt";
badgeEl.classList.add('bg-warning');
msgEl.innerHTML = "Please enter a valid Annual Debt Service amount to calculate the ratio.";
ratioEl.innerHTML = "N/A";
} else if (dscr >= 1.25) {
badgeEl.innerHTML = "Excellent / Lendable";
badgeEl.classList.add('bg-success');
msgEl.innerHTML = "A DSCR above 1.25 is generally considered a strong indicator of positive cash flow. Most lenders will readily finance a property with these metrics.";
ratioEl.style.color = "#46b450";
} else if (dscr >= 1.0 && dscr < 1.25) {
badgeEl.innerHTML = "Marginal / Risky";
badgeEl.classList.add('bg-warning');
msgEl.innerHTML = "The property is cash flowing, but barely. Lenders may require a higher down payment or may not approve the loan. A ratio of 1.20 is often the absolute floor for commercial loans.";
ratioEl.style.color = "#dfa002";
} else {
badgeEl.innerHTML = "Negative Cash Flow";
badgeEl.classList.add('bg-danger');
msgEl.innerHTML = "The property's operating income does not cover the debt service. This is a high-risk scenario, and traditional lenders will likely reject this loan application.";
ratioEl.style.color = "#dc3232";
}
}
DSCR Calculator (Debt Service Coverage Ratio)
Annual Income
Annual Debt
Annual Expenses
Analysis Results
Effective Gross Income:
–
Total Operating Expenses:
–
Net Operating Income (NOI):
–
Annual Debt Service:
–
Your Debt Service Coverage Ratio is:
0.00
Debt Service Coverage Ratio (DSCR) Explained for Investors
For real estate investors, specifically those dealing with commercial properties or investment portfolios, the Debt Service Coverage Ratio (DSCR) is arguably the single most important metric to understand. Unlike ROI or Cap Rate, which measure profitability potential, DSCR measures risk and solvency. It is the primary lens through which lenders view your asset.
Using the DSCR Calculator above, you can quickly assess whether a property generates enough income to pay its debts. Below, we break down exactly how this metric works, why lenders enforce specific thresholds, and how to improve your ratio.
What is the DSCR Formula?
The Debt Service Coverage Ratio is a comparison of a property's Net Operating Income (NOI) to its debt obligations.
DSCR Formula:
DSCR = Net Operating Income (NOI) ÷ Total Debt Service
1. Net Operating Income (NOI)
This is your annual revenue minus necessary operating expenses.
Calculation: (Gross Rent + Other Income) – (Taxes + Insurance + Maintenance + Management + Utilities).
Note: NOI does not include mortgage payments or capital expenditures.
2. Total Debt Service
This represents the total cash required to pay back the interest and principal on the loan for the same period (usually calculated annually).
Interpreting Your DSCR Results
Understanding the output of the calculator is vital for securing financing.
- DSCR < 1.0 (e.g., 0.85): The property has negative cash flow. The income generated is insufficient to cover the mortgage payments. You would need to inject personal capital every month to keep the loan current. Lenders almost never approve these loans.
- DSCR = 1.0: Break-even. The income exactly matches the debt payments. This leaves no room for unexpected repairs or vacancies.
- DSCR 1.0 – 1.20: Positive cash flow, but risky. Some lenders may consider this "marginal" and require higher down payments or interest reserves.
- DSCR > 1.25: The "Golden Standard". Most commercial lenders and DSCR-loan providers require a ratio of at least 1.20 to 1.25. This indicates the property generates 25% more income than is required to pay the debt, providing a safety cushion.
Real World Example
Imagine you are buying a duplex with the following financials:
- Gross Annual Rent: $60,000
- Operating Expenses: $15,000 (Taxes, Insurance, Repairs)
- Net Operating Income (NOI): $45,000
- Proposed Annual Mortgage Payment: $36,000
Calculation: $45,000 ÷ $36,000 = 1.25
This deal meets the standard requirement for most DSCR lenders, meaning the loan is likely to be approved based on the property's cash flow alone.
How to Improve Your DSCR
If your calculator result is below 1.25, you have three levers to pull to improve the ratio:
- Increase Income: Raise rents to market rates or add income streams (laundry, parking, storage).
- Decrease Expenses: Challenge property tax assessments, shop for cheaper insurance, or manage the property yourself to save on management fees.
- Reduce Debt Service: This is the most common fix. By putting a larger down payment on the property, you reduce the loan amount, thereby reducing the annual debt service and artificially inflating the DSCR.