DSCR Calculator for Acquisition
Evaluate whether a multifamily acquisition meets lender debt service requirements. Enter purchase price, down payment, and loan terms to calculate DSCR.
Acquisition Details
Agreed or target acquisition price
$
Equity contribution as percentage of purchase price
%
In-place or trailing-12 NOI for underwriting
$
%
Acquisition DSCR
Enter acquisition details to calculate DSCR
This calculator shows one property.
Cai shows your entire portfolio.
BubbleGum BI calculates DSCR across every property in your portfolio — with automated underwriting analysis and acquisition screening.
Schedule a DemoFrequently Asked Questions
What DSCR do lenders require for a multifamily acquisition?
Most agency lenders (Fannie Mae, Freddie Mac) require a minimum DSCR of 1.20x-1.25x for multifamily acquisitions. CMBS and bridge lenders may accept 1.10x-1.20x for strong sponsors with a clear value-add plan.
How does down payment affect DSCR?
A larger down payment reduces the loan amount, which lowers annual debt service, which improves DSCR. If a deal does not meet DSCR requirements, increasing equity contribution is one of the most direct ways to achieve compliance.
Should I use in-place NOI or pro forma NOI?
Lenders typically underwrite based on in-place NOI (or trailing-12-month NOI) with adjustments, not your optimistic pro forma. Use current operating performance for loan qualification and pro forma for your own investment analysis.
What is LTV and how does it relate to DSCR?
LTV (Loan-to-Value) is the ratio of loan amount to property value. Lenders use both LTV and DSCR as constraints — the more restrictive of the two typically determines maximum loan proceeds.