How do I calculate debt service coverage?
Published October 1, 2026 · 1 minute read
The answer
Divide the income measure specified by the lender by the debt-service measure it requires. The details matter: one calculation may use net operating income, while another uses a different qualifying estimate.
For illustration, $30,000 divided by $24,000 equals 1.25. That number only has meaning when both inputs and the period are defined consistently.
Further reading
These resources provide additional context. Check the official rules and documents that apply to your own situation.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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