Calculating Debt Service Coverage. $97,700 / 12 months = $8,142/month noi. With these numbers in mind we can now calculate the debt service coverage ratio of this apartment building.
It’s important to understand the concept and math behind the dscr if you are calculating your own cash flow analysis for a prospective commercial loan or apartment loan, whether it’s a purchase or refinance. Calculating the debt service coverage ratio like we did above doesn’t always tell the whole story. To calculate the dscr, yearly net operating income (noi) is divided by the yearly debt service of a.
