Debt Service Coverage Ratio (DSCR)
Ratio lenders use to verify income covers debt payments.
Formula
DSCR = Net Operating Income / Annual Debt Service
Explanation
DSCR of 1.0 means property barely breaks even on payments. Lenders require 1.20-1.25x minimum, meaning 20-25% more income than needed for debt service.
Example
$150K NOI / $120K debt service = 1.25x DSCR. Meets typical lender minimum.
How the CRE Analyst Agent Helps
- ✓Calculates debt service coverage ratio instantly from uploaded rent rolls and operating statements
- ✓Compares your deal against market benchmarks for the property type and location
- ✓Runs sensitivity analysis showing how changes in key variables affect outcomes
- ✓Generates professional investment summaries with all key metrics included
Frequently Asked Questions
How does the CRE Analyst Agent calculate this?▾
Upload an offering memorandum, rent roll, or operating statement. The agent extracts relevant data, performs the calculation, and presents results with market context.
Can I analyze multiple properties at once?▾
Yes. The CRE Analyst Agent evaluates multiple deals side by side, comparing all key metrics across your pipeline.
Does the agent account for market conditions?▾
Yes. The agent compares your deal metrics against benchmarks for the property type, class, and location.
How accurate are the calculations?▾
Calculations are mathematically precise based on the data you provide. The agent also flags potential data quality issues.
Analyze debt service coverage ratio instantly
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