Get instant clarity on how your property stacks up with the numbers that matter most
Yearly rental income expected
Parking, service charges, etc.
Assumed vacancy rate
Taxes, insurance, maintenance
Borrowed from bank/lender
Loan interest rate
Duration of loan
Equity (down payment + costs)
Acquisition cost
Upgrades, renovations
The Cash-on-Cash Return (CoC) and Debt Service Coverage Ratio (DSCR) Calculator is a valuable tool for investors looking to assess both the income potential and loan feasibility of commercial properties.
CoC indicates the cash return an investor earns compared to their initial cash investment, making it a practical metric for comparing deals that involve leverage versus those that do not.
On the other hand, DSCR evaluates whether the rental income generated is enough to meet loan repayment obligations. Lenders place significant importance on DSCR when evaluating commercial property loans, so it's crucial for investors to grasp this concept.
This calculator provides a comprehensive view of investment strength, funding viability, and long-term risks. For a thorough financial analysis, consider using it alongside ROI and stamp duty calculations.
Cash-on-cash return measures the annual cash income generated by a property compared to the actual cash invested, making it useful for leveraged investments.
DSCR (Debt Service Coverage Ratio) measures whether rental income is sufficient to cover loan repayments. Lenders use it to assess loan risk.
Most lenders prefer a DSCR above 1.20–1.30, indicating that income comfortably exceeds debt obligations.
Yes. A property may appear profitable overall but still struggle to service debt if loan repayments are too high relative to income.