« Back to Glossary Index
The ratio of cash flow available to pay for debt to the total amount of debt payments to be made. In real estate finance, DSCR is the primary measure to determine if a property will be able to sustain its debt based on cash flow. Calculated by dividing NOI (or, difference between gross revenue and operating expenses) and Debt Service (total of Principal Repayment, Interest Payments, and Lease Payments).