Question: what is the formula for debt service coverage ratio?
Answer: The debt service coverage ratio (DSCR) is defined as net operating income divided by total debt service. For example, suppose Net Operating Income (NOI) is $120,000 per year and total debt service is $100,000 per year. ... In this example it could be shown as “1.20x”, which indicates that NOI covers debt service 1.2 times.