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Debt Service Coverage DCR Calculator

The typical minimum ratios for income property are 1.10:1% to 1.25:1%.
1.10:1% means that the borrower has $1.10 of net operating income for every dollar of debt payment.
In commercial lending: the lower the debt ratio, the higher the risk.

Debt Service Ratio (DCR) Calculator
NOI/TAP= DCR

Net Operating Income:
Divide
Total Annual Payments:


$30,000 Net operating income / (divided by) $24,000 Total Annual Payments = 1.25%
This means the borrower has $1.25 in Net Operating Income for every $1.00 in debt service.
Expressed mathematically in a ratio: 1.25:1

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Calculate NOI Available for Monthly Payment
NOI/12=Monthly Net Operating Income (MNOI)

Net Operating Income:
Divide
Type 12 months

MNOI = Monthly Net Operating Income

MNOI:
Divide
DCR

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