Financials
Debt service coverage ratio is NOI divided by annual principal and interest. Lenders use it to test whether operations can pay the loan.
Updated Sep 12, 2026
DSCR = NOI ÷ Annual debt service
DSCR tells a lender whether the property's operations, not the borrower's personal income, can cover the mortgage. A 1.25 DSCR means NOI is 25% above annual debt service.
Because NOI is the numerator, expense spikes and vacancy immediately pressure DSCR. Keep a trailing twelve-month view, not only a pro forma.
Unitz keeps NOI and loan records together so coverage is easier to review before a refinance. See Financial Intelligence.
Cash-on-cash return is annual pre-tax cash flow divided by the cash you invested, including down payment and closing costs.
Net operating income is rental revenue minus operating expenses, before debt service and capital expenditures.
A T12 is a trailing twelve-month operating statement showing income and expenses for the last 12 complete months.
See this in the product: Financial Intelligence
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