OfferMarket
Table of contents
Table of contents
Loans

*Quote takes 1 minute, no credit pull

Insurance

*1 quote from 40+ carriers

Listings

*New listings daily

Table of contents
Table of contents

How to Calculate Debt Service Coverage

Last Updated: October 9, 2025

What Is Debt Service Coverage?

Debt service coverage measures your ability to pay mortgage obligations from property income. Use debt service coverage to show lenders that your rental income consistently supports your monthly payment responsibilities. Emphasize debt service coverage during loan evaluations because lenders consider this number essential for risk assessment.

How to calculate Debt Service Coverage

Calculate debt service coverage with this primary formula:

Marketing image for the article
Broker Hard Money: Quick, Fast Funding Tips for Real Estate, Projects & Profit Gains

Broker hard money financing gives fast, flexible real estate funding with clear terms and quick approvals. Ideal for fix-and-flip and rental deals.

Marketing image for the article
DSCR Loan for LLC

DSCR loans LLC is the standard entity. This guide helps you navigate the process and underwriting for your LLC borrowing entity application.

Marketing image for the article
How can I sell my house fast for a good price?

Here's how to your house fast for a good price (optimal net proceeds). There's more to learn at OffeMarket.