Debt Coverage Stress-Tester

See how much income cushion a deal holds before debt coverage gets tight.

Enter your income and debt payments to check coverage.

Property labelGross Rents (annual, $)What the property brings in before any expenses.Operating Expenses (excluding mortgage, $)Taxes, insurance, maintenance, management, repairs. Do not include mortgage payments. Enter those below as annual debt service.Annual Debt Service ($)Annual mortgage principal and interest. This is the denominator, not an operating expense.

NOI (Gross Rents minus Operating Expenses): --Annual Debt Service: --

Debt Coverage

Enter your numbers above to calculate.

Debt Coverage is NOI divided by annual debt service. NOI is gross rents minus operating expenses, and it excludes the mortgage payment. A Debt Coverage ratio of 1.25 means the property generates 25 percent more income than its debt requires. Below 1.0 means the debt is not covered by income alone.

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