DSCR KPI example.
This example explains DSCR. Indevest reviews DSCR with income, financing, cash-flow, tax, threshold, and comparison context.
Educational KPI example
This example explains a KPI formula. Indevest brings KPI formulas together inside one opportunity analysis workflow.
| Metric | Formula | What it means |
|---|---|---|
| DSCR | Annual NOI / annual debt service | Debt coverage from operating income. |
| Annual debt service | Monthly loan payment x 12 | Estimated yearly loan payment. |
Common DSCR mistakes
Calculate DSCR from NOI and include variable-rate risk, tax estimates, reserves, repairs, and expense changes in the review.
Example scenario
If annual NOI is $150,000 and annual debt service is $120,000, DSCR is 1.25x. That means NOI is 1.25 times annual debt service before tax assumptions.
Screen your next investment before deeper diligence.
Use Indevest to review cash flow, CAP rate, DSCR, cash-on-cash return, financing, taxes, assumptions, other KPIs and flags in one analysis.