How to calculate DSCR in Excel? Since this concept has a clear-cut formula that analysts can use to understand the outcome, it can easily be calculated in excel by dividing the company's total net operating income by its total debt service. What is a good DSCR for a rental property? The...
As a reminder, the formula to calculate the DSCR is as follows: Net Operating Income / Total Debt Service. Place your cursor in cell D3. The formula in Excel will begin with the equal sign. Type the DSCR formula in cell D3 as follows: =B3/C3 Press Enter or Return on yo...
Many lenders make adjustments to the DSC formula based on their risk appetite and the nature of a financing request. Debt Service Coverage Ratio Formula Conceptually, the idea of DSCR is: Debt Service Coverage is usually calculated using EBITDA as a proxy for cash flow. Adjustments will vary de...