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Debt Coverage Ratio Calculator

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✖Net operating income is a calculation used to analyze real estate investments that generate income. It equals all revenue from the property minus all reasonably necessary operating expenses.ⓘ Net Operating Income [NOI]			+10% -10%
✖Debt service is the cash that is required to cover the repayment of interest and principal on a debt for a particular time period.ⓘ Debt Service [DS]			+10% -10%

✖Debt Coverage Ratio is a measure of the cash flow available to pay current debt obligations.ⓘ Debt Coverage Ratio [DSCR]

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Debt Coverage Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Debt Coverage Ratio = Net Operating Income/Debt Service
DSCR = NOI/DS
This formula uses 3 Variables

Variables Used

Debt Coverage Ratio - Debt Coverage Ratio is a measure of the cash flow available to pay current debt obligations.
Net Operating Income - Net operating income is a calculation used to analyze real estate investments that generate income. It equals all revenue from the property minus all reasonably necessary operating expenses.
Debt Service - Debt service is the cash that is required to cover the repayment of interest and principal on a debt for a particular time period.

STEP 1: Convert Input(s) to Base Unit

Net Operating Income: 40000 --> No Conversion Required
Debt Service: 14000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

DSCR = NOI/DS --> 40000/14000

Evaluating ... ...

DSCR = 2.85714285714286

STEP 3: Convert Result to Output's Unit

2.85714285714286 --> No Conversion Required

FINAL ANSWER

2.85714285714286 ≈ 2.857143 <-- Debt Coverage Ratio

(Calculation completed in 00.004 seconds)

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Debt Coverage Ratio Formula

LaTeX Go

Debt Coverage Ratio = Net Operating Income/Debt Service
DSCR = NOI/DS

How to Calculate Debt Coverage Ratio?

Debt Coverage Ratio calculator uses Debt Coverage Ratio = Net Operating Income/Debt Service to calculate the Debt Coverage Ratio, The Debt Coverage Ratio is a measure of the cash flow available to pay current debt obligations. Debt Coverage Ratio is denoted by DSCR symbol.

How to calculate Debt Coverage Ratio using this online calculator? To use this online calculator for Debt Coverage Ratio, enter Net Operating Income (NOI) & Debt Service (DS) and hit the calculate button. Here is how the Debt Coverage Ratio calculation can be explained with given input values -> 2.857143 = 40000/14000.

FAQ

What is Debt Coverage Ratio?

The Debt Coverage Ratio is a measure of the cash flow available to pay current debt obligations and is represented as DSCR = NOI/DS or Debt Coverage Ratio = Net Operating Income/Debt Service. Net operating income is a calculation used to analyze real estate investments that generate income. It equals all revenue from the property minus all reasonably necessary operating expenses & Debt service is the cash that is required to cover the repayment of interest and principal on a debt for a particular time period.

How to calculate Debt Coverage Ratio?

The Debt Coverage Ratio is a measure of the cash flow available to pay current debt obligations is calculated using Debt Coverage Ratio = Net Operating Income/Debt Service. To calculate Debt Coverage Ratio, you need Net Operating Income (NOI) & Debt Service (DS). With our tool, you need to enter the respective value for Net Operating Income & Debt Service and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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