{"id":167,"date":"2011-10-01T17:46:19","date_gmt":"2011-10-01T22:46:19","guid":{"rendered":"http:\/\/www.RealEstateAnalysisFREE.com\/blog\/?p=167"},"modified":"2021-04-28T05:20:44","modified_gmt":"2021-04-28T10:20:44","slug":"debt-coverage-ratio-dcr","status":"publish","type":"post","link":"https:\/\/www.zilculator.com\/blog\/debt-coverage-ratio-dcr\/","title":{"rendered":"Debt Coverage Ratio (DCR)"},"content":{"rendered":"<p><strong>Debt coverage ratio<\/strong> is the real estate ratio between the annual net operating income (NOI) and annual debt service (ADS) of the particular property. ADS is the total of 12 monthly mortgage payments. If NOI and ADS are the same amounts, DCR equals 1.0. This however would not be enough for a mortgage lender, who always requires some margin of safety and therefore DCR must always be higher than 1.0 (usually at least 1.20).<\/p>\n<!-- WP QUADS Content Ad Plugin v. 2.0.17 -->\n<div class=\"quads-location quads-ad2\" id=\"quads-ad2\" style=\"float:none;margin:0px;\">\n\n <!-- WP QUADS - Quick AdSense Reloaded v.2.0.17 Content AdSense async --> \n\n\n<script type=\"text\/javascript\" >\nvar quads_screen_width = document.body.clientWidth;\nif ( quads_screen_width >= 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 1024  && quads_screen_width < 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 768  && quads_screen_width < 1024 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width < 768 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }\n<\/script>\n\n <!-- end WP QUADS --> \n\n\n<\/div>\n\n<p><img loading=\"lazy\" class=\"aligncenter\" title=\"Debt Coverage Ratio\" src=\"\/images\/blog\/debt_coverage_ratio.gif\" alt=\"\" width=\"540\" height=\"65\" \/><\/p>\n\n\n<p><strong>Note:<\/strong> Zilculator published a new LEARN section with an updated article including <a href=\"https:\/\/www.zilculator.com\/real-estate-analysis\/debt-service-coverage-ratio-dscr-formula-excel-example\">Debt coverage ratio excel template<\/a>.\n","protected":false},"excerpt":{"rendered":"<p>Debt coverage ratio is the real estate ratio between the annual net operating income (NOI) and annual debt service (ADS) of the particular property. ADS is the total of 12&#8230;<\/p>\n","protected":false},"author":1,"featured_media":69063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[68],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Debt Coverage Ratio (DCR) | Zilculator: Real Estate Investment Analysis blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zilculator.com\/blog\/debt-coverage-ratio-dcr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt Coverage Ratio (DCR) | Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"og:description\" content=\"Debt coverage ratio is the real estate ratio between the annual net operating income (NOI) and annual debt service (ADS) of the particular property. 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