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Real Estate Glossary

DSCR

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Written by Luis Escobar

This is short for debt service coverage ratio, which is a metric used to measure a property’s ability to cover all ofits debt obligations. The DSCR is calculated by dividing the annual net operating income (NOI) by the annual debt service expense. It is often expressed as a multiple. This is then used by banks to calculate the maximum loan amount to be offered to a borrower.

This is short for debt service coverage ratio, which is a metric used to measure a property’s ability to cover all ofits debt obligations. The DSCR is calculated by dividing the annual net operating income (NOI) by the annual debt service expense. It is often expressed as a multiple. This is then used by banks to calculate the maximum loan amount to be offered to a borrower.

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Luis Escobar

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