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Investment DictionaryDSCR (Debt Service Coverage Ratio)
NOI divided by loan payments. It answers the lender's question - does the property pay its own mortgage, with room to spare?
The debt service coverage ratio (DSCR, sometimes DCR) measures whether a property's income covers its loan payments.
DSCR = NOI / annual_debt_service
A DSCR of 1.00 means net operating income exactly covers the mortgage, with zero cushion. Above 1.00 is breathing room. Lenders typically require a minimum between 1.20 and 1.25, depending on the loan program and risk.
DSCR sizes the loan, not just the risk
Lenders underwrite to the lesser of two limits: the LTV cap and the DSCR floor. A $1,000,000 property at 75% LTV could support a $750,000 loan on value alone, but if income only supports a 1.25 DSCR at today's rates, the real maximum might be $650,000. Income constrains borrowing, not just price.
Where you'll see it in Rescover
The calculator computes DSCR on every analysis, and the Deal Wizard sizes loans exactly the way lenders do: by the lesser of your maximum LTV and minimum DSCR.
Amortization (Loan Paydown)
Every mortgage payment quietly buys back a piece of your property. That's equity you didn't have to write a check for.
APOD (Annual Property Operating Data)
The one-page financial statement of a rental - income at the top, cash flow at the bottom, every deduction visible in between.
Cap Rate
Net operating income divided by price. The speed of the return, before financing.
See it with your own numbers.
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