Oycora methodology
Debt Service Coverage Ratio (DSCR)
Annual NOI divided by annual debt service.
How this is calculated
DSCR is unavailable for a cash purchase because annual debt service is zero.
Why it matters
DSCR describes how modeled property operating income compares with required loan payments.
What is included
- Annual NOI
- Annual principal and interest payments
What is excluded
- CapEx
- Income taxes
- Lender-specific underwriting adjustments not entered in Oycora
Assumptions and limitations
- Lenders may define qualifying income and expenses differently.
Used in Oycora
Related learning
Financing
DSCR Explained: How to Calculate Debt Service Coverage Ratio for Rental Property
DSCR measures how comfortably a rental property's income can cover its required debt payments. Learn how to calculate debt service coverage ratio, interpret the result, and understand why lender requirements can vary.
Oycora Guide · Financing
The Complete Guide to Rental Property Financing
Rental property financing affects much more than the monthly mortgage payment. This Guide explains how occupancy, down payment, leverage, interest rate, amortization, qualifying rental income, DSCR, refinancing, and reserves shape both the purchase and the property’s long-term performance.
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Oycora Guide · Property Analysis
The Complete Guide to Analyzing a Rental Property
A complete rental-property analysis starts long before the final return percentage. This Guide walks through how to build realistic assumptions, measure operating performance, account for financing, interpret the major metrics, and stress-test the result before relying on it.
Read Guide →