Commercial Real Estate Calculators

DSCR = Net Operating Income ÷ Annual Debt Service. Lenders use DSCR to qualify investment property loans without relying on personal income. Most lenders require a DSCR of 1.25 or higher — meaning the property earns 25% more than it costs to service the debt.

Cap Rate = Annual NOI ÷ Property Value × 100. The capitalization rate measures a property's potential return independent of financing. Higher cap rates signal higher returns — and typically higher risk or lower-tier markets. A 5–8% range is common in most markets.

NOI = Effective Gross Income − Operating Expenses. NOI is the annual income a property generates after operating expenses but before mortgage payments and income taxes. It is the foundation of DSCR and cap rate calculations.

CoC = Annual Pre-Tax Cash Flow ÷ Total Cash Invested × 100. Cash-on-cash return measures the actual cash you receive relative to the cash you put in (down payment + closing costs + rehab). Unlike cap rate, it accounts for financing and is one of the most practical metrics for real estate investors.