--DEBT SERVICE COVERAGE RATIO (DSCR) CALCULATOR--

A Debt Service Coverage Ratio (DSCR) calculator is a financial tool used to assess the ability of a property to cover its debt obligations with its net operating income. The DSCR is a critical metric for both lenders and borrowers in commercial real estate financing.

1. Input Net Operating Income: Enter the net operating income (NOI) of the property in the "Net Operating Income" field. This represents the income generated by the property after deducting operating expenses but before deducting interest, taxes, depreciation, and amortization.
2. Input Total Debt Service: Enter the total debt service (TDS) of the property in the "Total Debt Service" field. This includes all debt obligations related to the property, such as mortgage payments, interest, and other debt-related expenses.
3. Calculate DSCR: Click the "Calculate DSCR" button. The calculator will process the input values and compute the Debt Service Coverage Ratio (DSCR).
4. Review the Result: The calculator will display the calculated DSCR in the "Debt Service Coverage Ratio (DSCR)" section. This value represents how many times the property's net operating income covers its debt obligations.
5. Interpret the Result: A DSCR greater than 1 indicates that the property generates sufficient income to cover its debt payments, while a DSCR less than 1 suggests potential difficulty in meeting debt obligations.