---
title: "DSCR (Debt Service Coverage Ratio) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/dscr/
---

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# DSCR (Debt Service Coverage Ratio)

Also called: debt service coverage ratio

Net operating income divided by annual debt service: how many times the property covers its own loan payment.

A DSCR of 1.0 means the property exactly covers its debt service, with nothing spare. Lenders on investment loans generally want a cushion above that.

The ratio is only as reliable as the NOI feeding it, so vacancy and management assumptions matter as much as the rent figure.

## Put a number on it

This term is an input in the calculator below.

- [DSCR CalculatorEstimate debt service coverage ratio for rental financing.](/calculators/dscr/)

## Related terms

- [NOI (Net Operating Income)Income after operating expenses but before debt service, taxes on income, and capital expenditures.](/glossary/noi/)
- [DSCR loanAn investment-property loan qualified on the property’s rental income rather than the borrower’s personal income.](/glossary/dscr-loan/)
- [Cash flowWhat remains each month after rent has covered operating expenses and debt service.](/glossary/cash-flow/)

## Go deeper

- [DSCR vs full-doc rental loans](/blog/dscr-vs-full-doc-rental-loan/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)