Debt Service Coverage Ratio (DSCR)
Lending & MortgagesA measure of cash flow available to pay current debt obligations, calculated as net operating income divided by total debt service.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding debt service coverage ratio (dscr) helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how debt service coverage ratio (dscr) impacts your specific situation.