Metrics
DSCR (Debt Service Coverage Ratio)
Net Operating Income ÷ mortgage payment. Measures whether the property's income comfortably covers debt service.
Under this formula, 1.0 means modeled NOI equals modeled debt service. Lender definitions, qualifying inputs, thresholds, and approval rules vary by product, borrower, and property.
How it's calculated
DSCR = NOI ÷ Annual Debt ServiceExample
A property with $36,000 NOI and $24,000 of annual mortgage payments has DSCR = $36,000 ÷ $24,000 = 1.50.
Why DSCR (Debt Service Coverage Ratio) matters
DSCR shows the modeled relationship between NOI and debt service under the stated convention. It can prompt questions for a lender, but TrueCap does not reproduce every lender's calculation or predict approval.
Related terms
NOI (Net Operating Income)
Gross annual rent minus all operating expenses, before debt service and income tax.
Cap Rate
Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
LTV (Loan-to-Value)
Loan amount divided by the lender's eligible value basis. Investment-property cash-out limits vary b…
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Where DSCR (Debt Service Coverage Ratio) shows up in TrueCap
The analyzer computes this metric on every run from the assumptions you see and can edit, shows it in the results view beside cash flow after reserves and DSCR, and uses your targets for it in Buy Box fit and in the Offer Ceiling — the highest price that still meets those targets. It appears in the written decision memo and the PDF with the same value and the same inputs.