Commercial DSCR Calculator
Debt Service Coverage Ratio (DSCR) is a property's net operating income divided by its annual mortgage payments — lenders use it to gauge whether the income comfortably covers the debt.
Debt Service Coverage Ratio
Comfortably covers typical conventional and CMHC lender minimums (1.20–1.25x+).
- NOI
- $180,000
- Annual debt service
- $140,000
- Implied cap rate (at price entered)
- 8.18%
Typical Lender DSCR Requirements
Conventional commercial lenders: ≥ 1.20–1.25x
CMHC Standard (MLI Market): ≥ 1.20x
CMHC MLI Select (50–100 pt tiers): ≥ 1.10x
General guidance based on published CMHC program parameters — actual minimums vary by lender and deal.
Ontario Cap Rate Benchmarks (for the cross-check above)
| Asset type | Median sale price | Cap rate range |
|---|---|---|
| Other | $1,900,000 | n/a |
| Land | $2,450,000 | n/a |
| Multifamily | $2,215,750 | n/a |
| Industrial | $2,898,190 | n/a |
| Retail | $1,850,000 | n/a |
Source: EVALUAITE Market Intelligence — Ontario CRE transactions · Ontario, last 5 years · as of 2026-08-08.
DSCR and the cap-rate cross-check are computed directly in your browser from the numbers you enter. Cap-rate benchmarks come from real closed transactions in EVALUAITE's Ontario transaction dataset (last 5 years).
By the EVALUAITE Team · Benchmarks as of 2026-08-08 · Powered by the EVALUAITE proforma engine.
Frequently Asked Questions
What is DSCR (Debt Service Coverage Ratio)?
DSCR = net operating income (NOI) ÷ annual debt service. A DSCR of 1.25x means the property's income covers its mortgage payments 1.25 times over — the cushion lenders look for before approving commercial financing.
What DSCR do lenders require for commercial real estate?
It varies by lender and program. Conventional commercial lenders commonly look for around 1.20–1.25x or higher. CMHC's insured multi-unit programs typically require at least 1.20x under the Standard program, and as low as 1.10x under MLI Select's higher tiers.
How do I calculate annual debt service if I only know my loan terms?
Use the 'Estimate it from loan terms' helper above — enter your loan amount, interest rate, and amortization period, and it computes the monthly payment on a standard amortizing mortgage and annualizes it.
What's the difference between DSCR and cap rate?
Cap rate is unlevered — NOI divided by price, ignoring financing. DSCR is about your specific loan — NOI divided by the debt payments that loan requires. A deal can have an attractive cap rate but still fail a DSCR test if it's financed aggressively.
What happens if my DSCR is below the lender's minimum?
The loan amount typically gets sized down (a smaller loan lowers debt service and raises DSCR) rather than declined outright, though terms vary by lender and program. A CMHC-insured deal with a stronger MLI Select score can also unlock a lower minimum DSCR threshold.