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Debt Service Coverage Ratio Calculation: Step-by-Step Guide for Real Estate Investors

Last Updated: June 25, 2025

Understanding Debt Service Coverage Ratio (DSCR)

Debt service coverage ratio (DSCR) helps evaluate your ability to cover loan-related expenses using property income. Mastering DSCR ensures accurate financial analysis for investment and lending decisions.

What Is Debt Service Coverage Ratio?

Debt service coverage ratio is a financial ratio that measures how efficiently your rental income pays for specific debt service obligations. For DSCR calculation in rental real estate, use this formula:

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Understanding Hard Lender Mortgages: Benefits and Risks for Real Estate Investors

Learn how hard lender mortgages support real estate investments with fast funding, flexible terms, and clear application steps. Get started today.

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Luxury Redefined: Episode 1

Luxury Redefined Episode 1 features 5505 Stuart Ave, Baltimore, MD 21215. A distressed listing with so much potential.

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Is a DSCR Loan Conventional? Understanding the Key Differences for Real Estate Investors

Is a DSCR loan conventional? Explore the key differences, advantages, and benefits of DSCR loans compared to conventional loans for real estate investors.