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Commercial DSCR Calculator

Stress-test monthly rent vs PITIA coverage for commercial apartment buildings—not residential 1–4 unit DSCR programs.

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Quick answer

Commercial DSCR Calculator

Stress-test monthly rent vs PITIA coverage for commercial apartment buildings—not residential 1–4 unit DSCR programs.

DSCR inputs

Enter your deal

I/O mode
$

Market rent or lease rent

$

P&I from amortization

$

Annual tax / 12

$

Hazard premium / 12

$

Optional

$

Optional

Your DSCR

1.37

1.25+ — best pricing

Best rates available. Full LTV access, fastest approvals, widest lender pool.

Monthly gross rent
$2,800
Monthly PITIA
$2,050
Monthly cash flow
$750
Annual cash flow
$9,000

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What this means

DSCR is your rent divided by PITIA (principal, interest, taxes, insurance, association dues). It's the single most important number a multifamily lender looks at. A 1.00 DSCR means your rent exactly covers the mortgage. Lenders price the loan off of it — higher DSCR, better rate, higher LTV.

Which lender tier qualifies?

DSCR bandWhat you'll findTypical LTV cap
Sub-0.75
Limited — consider a no-ratio or Griffin-style program65–70%
0.75 – 0.99
Competitive — 5+ lender options70–75%
1.00 – 1.24
Broad lender access, mainstream pricingup to 80%
1.25+
Best rates, widest lender pool, fastest approvalsup to 80% (85% select)

Save your results

Get a lender-fit read at your DSCR

Submit your assumptions for a free underwriting review and capital-path options — usually within one business hour. No credit pull.

Get free deal review

Hand-picked next steps — go deeper on this topic, compare alternatives, or run the numbers.

How this calculator measures DSCR

This tool uses a practical monthly coverage screen for 5+ unit multifamily deals:

DSCR = Monthly Gross Rent ÷ Monthly PITIA

PITIA includes principal & interest, property tax, insurance, HOA, and flood. Lender commercial underwriting often uses NOI ÷ annual debt service instead—pair this screen with our Cap Rate & NOI and Debt Yield calculators for a fuller picture.

Worked example: monthly rent vs PITIA

A 32-unit building collects $2,800 monthly gross rent on a unit-level screen. Monthly PITIA is $2,050 (P&I $1,620 + tax $320 + insurance $110).

  • DSCR: $2,800 ÷ $2,050 = 1.37x
  • Monthly cash flow after PITIA: $750

Bridge lenders may size on in-place metrics while agency takeout lenders focus on stabilized NOI coverage. See our commercial DSCR guide and agency vs bridge comparison. For 1–4 unit rentals, use the free DSCR calculator at DSCR Authority instead.

Frequently asked questions

What is commercial DSCR for multifamily?
Commercial DSCR measures whether property cash flow covers debt service. This calculator uses a practical monthly screen: gross rent ÷ PITIA (principal & interest, taxes, insurance, HOA, and flood). Full lender underwriting on 5+ unit deals often uses normalized NOI ÷ annual debt service, then layers debt yield and LTV.
How does this calculator compute DSCR?
DSCR = Monthly Gross Rent ÷ Monthly PITIA. If rent is $2,800 and PITIA is $2,050, DSCR is 1.37x. Higher coverage generally supports more proceeds or better pricing. For NOI-based sizing, use our Cap Rate & NOI and Debt Yield tools alongside this screen.
What DSCR do multifamily lenders require?
Requirements vary by product and asset stage. Many stabilized agency deals target roughly 1.20x–1.30x on in-place NOI, while bridge lenders may accept lower in-place coverage if a credible stabilization plan exists.
Why does my DSCR differ from the lender's?
Lenders may haircut revenue, stress expenses, include reserves, and use their own rate and amortization assumptions. A rent÷PITIA screen is directional; sponsor spreadsheet DSCR often runs higher than lender underwriting DSCR.
Does interest-only debt affect DSCR?
Yes. IO periods reduce near-term debt service, which can inflate DSCR temporarily. Lenders often also test amortizing DSCR or debt yield to avoid over-leveraging into IO structures.
How can I improve DSCR before refinancing?
Focus on durable income improvements—occupancy, effective rent, expense control—and realistic loan sizing. Short-term rate bets rarely substitute for stronger operating performance.
Is this calculator for residential DSCR loans?
No. Multi-Family USA focuses on commercial multifamily financing for 5+ unit apartment buildings. Residential 1–4 unit DSCR products follow different guidelines—use the free DSCR calculator on our sister site DSCR Authority.
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