Calculator
DSCR Stress Test Calculator
See how much cash flow can fall before the deal breaks
A base-case DSCR is only the starting point. Commercial lenders want to know whether repayment still works if revenue, NOI, or EBITDA drops. This calculator shows DSCR and cash-flow cushion under common downside stress cases.
- ✓Stress tests DSCR from flat NOI through a 30% cash-flow decline
- ✓Includes existing and proposed annual debt service
- ✓Shows the NOI cushion or shortfall against a minimum DSCR
$300,000
$210,000
$0
1.25x
Base DSCR
1.43x
Required NOI
$262,500
Stress Cushion
12.5%
NOI decline before failing minimum DSCR
| NOI Stress | Stressed NOI | DSCR | Cushion / Gap |
|---|---|---|---|
| 0% | $300,000 | 1.43x | $37,500 |
| -5% | $285,000 | 1.36x | $22,500 |
| -10% | $270,000 | 1.29x | $7,500 |
| -15% | $255,000 | 1.21x | -$7,500 |
| -20% | $240,000 | 1.14x | -$22,500 |
| -25% | $225,000 | 1.07x | -$37,500 |
| -30% | $210,000 | 1.00x | -$52,500 |
Frequently Asked Questions
Why stress test DSCR?
A borrower can pass DSCR today but fail if revenue or margins decline. Stress testing shows whether the loan has enough repayment cushion.
What DSCR stress case do lenders use?
It varies, but 10%, 20%, and 30% cash-flow declines are common borrower-facing scenarios to understand downside risk.
Should I include the proposed loan payment?
Yes. Use total debt service after the new loan closes if you want the same view the lender will underwrite.