DSCR: Debt Service Coverage Ratio
DSCR: Debt Service Coverage Ratio
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Debt Coverage Ratio - Meaning, Formula, How to Calculate?
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The ratio that decides your next deal (before you get emotionally attached) 👇 In property, the Debt Service Coverage Ratio (DSCR) is a big one. DSCR = rental income ÷ debt payments In plain English: Does the rent comfortably cover the mortgage payments? Example: Rent = £2,000/month Mortgage payment = £1,500/month 👉 DSCR = 1.33 Why this ratio matters: ✅ It tells you whether the deal is resilient when rates rise or voids happen ✅ Lenders often look at it when deciding how much they’ll lend ✅ It
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