What is a good DSCR ratio for lenders?

Most commercial banks require a minimum DSCR of 1.20x to 1.25x to approve a property mortgage, providing a cash flow buffer.

What happens if DSCR drops below 1.0x?

A DSCR below 1.0x indicates negative cash flow—the business does not earn enough operating profit to pay its mortgage payments.

Calculate bank debt limits. Enter property Net Operating Income (NOI) and annual debt service to calculate DSCR ratios.

Annual Property NOI ($)

Annual Debt Service ($)

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