Apartment DSCR Sensitivity Calculator: Rate and NOI Grid

Short answer

A DSCR sensitivity grid recalculates your debt service coverage ratio, and the maximum loan at the lender's minimum DSCR, across a range of interest rate moves and NOI changes. Enter NOI, loan amount, rate, amortization and minimum DSCR to see which combinations pass, which fail, and how much loan each scenario supports.

What this calculator answers

A single DSCR calculation tells you whether a loan works on today's numbers. It does not tell you what happens if the rate moves before you lock, or if the lender underwrites NOI lower than you expect. Those are the two things most likely to change between your first quote and your closing.

This tool runs the coverage test across a grid: rate moves down one axis, NOI changes across the other. Each cell shows the DSCR and the largest loan that still meets the minimum. It is built for owners of 5+ unit buildings who want to know how much room they have before they start a refinance or sign a rate lock.

DSCR sensitivity grid

NOI ($/yr)Loan amount ($)Rate (%)Amortization (years)Lender's min DSCR (x)

DSCR today–

Estimates only, not a loan quote.

How to use it

NOI. Your net operating income for the last twelve months, or better, the lender's underwritten NOI if you have run the T-12 underwriting calculator. The grid is only as honest as this number.
Loan amount. The loan you want or need, for example the payoff of your current loan plus closing costs.
Rate. The rate on your quote, or the rate you expect. See refinance rate inputs for the index it is built on.
Amortization. The amortization period on the quote, usually 25 or 30 years. A longer schedule lowers the payment and raises DSCR.
Minimum DSCR. The lender's coverage requirement from the term sheet. If you do not have one yet, check the program you are targeting; it varies by program and lender.

Worked example

Say your building earns $600,000 of NOI and you want a $6,500,000 loan at 6.25% on a 30-year amortization. The lender requires a minimum DSCR of 1.25x.

Rate	NOI -10%	NOI -5%	NOI 0%	NOI +5%	NOI +10%	Max loan at 1.25x
5.25%	1.25x	1.32x	1.39x	1.46x	1.53x	$7,243,704
5.75%	1.19x	1.25x	1.32x	1.38x	1.45x	$6,854,328
6.00%	1.15x	1.22x	1.28x	1.35x	1.41x	$6,671,665
6.25%	1.12x	1.19x	1.25x	1.31x	1.37x	$6,496,489
6.50%	1.10x	1.16x	1.22x	1.28x	1.34x	$6,328,433
6.75%	1.07x	1.13x	1.19x	1.25x	1.30x	$6,167,147
7.25%	1.01x	1.07x	1.13x	1.18x	1.24x	$5,863,587

Find the center cell first: that is your loan on today's numbers. Then look at the boundary where cells turn from pass to fail. If the boundary sits right next to the center, a small rate move or a modest underwriting cut to NOI will shrink your loan. If it is several steps away, you have room.

The max-loan figures show the cost of each move in dollars. Compare them to your payoff. Where the max loan drops below what you need, that scenario requires new equity at closing.

How the coverage test sizes the loan

DSCR is NOI divided by annual debt service. A lender with a 1.25x minimum wants NOI to be at least 1.25 times the annual payment. Turned around, the most annual debt service allowed is NOI divided by the minimum DSCR. The payment formula at the quoted rate and amortization then converts that payment into a maximum loan.

That is why rate and NOI both matter. A higher rate raises the payment on every dollar borrowed, so the same NOI supports fewer dollars. Lower NOI shrinks the payment allowed. The grid shows both effects at once.

The coverage test is only one limit. Lenders also apply a maximum loan-to-value and sometimes a minimum debt yield, and the lowest of the three sets the loan. If your loan-to-value is tight, check it separately with the cash-out calculator.

What this tool assumes

Fully amortizing payments. Coverage is tested on the principal-and-interest payment. Some lenders test interest-only loans on the interest-only payment, which produces a higher DSCR. Ask how your lender tests it.
Your NOI is the lender's NOI. If you enter your own NOI, the grid is likely optimistic. Lenders usually underwrite a lower figure.
Fixed amortization and minimum. Real lenders sometimes change the amortization or the minimum DSCR with loan size and leverage tiers.
Only coverage. The grid does not check loan-to-value, debt yield, or program eligibility.

What to do next

If most of the grid passes, your loan has room. Get quotes and think about locking early if the rate is the bigger risk.

If the center cell passes but nearby cells fail, treat rate and underwriting as the two risks to manage. Ask lenders about rate lock timing, and clean up your T-12 so the lender's NOI is as close to yours as the facts allow.

If the center cell fails, the loan does not size today. Your options are a smaller loan with equity, a longer amortization, interest-only, a different program, or waiting for NOI to grow. Our guide on refinancing when the numbers won't size walks through each. You can share the grid or send it with "get quotes on these numbers" to desk@janover.co.

Frequently asked questions

What is a good DSCR for an apartment loan?

There is no single number. Each lender and program sets its own minimum, and it often changes with leverage, loan size and property type, so take the figure from your term sheet or the program's published guide. A good DSCR is one comfortably above that minimum, so a small rate move or an underwriting cut to NOI does not shrink your loan below what you need.

How much does a rate increase reduce my maximum loan?

It depends on your rate, amortization and NOI, but on a 30-year amortization at rates between 5% and 7%, each quarter-point increase cuts the maximum loan by roughly 2.5 to 2.8 percent when the coverage test is the binding limit. The grid shows the exact effect for your numbers, in dollars, so you can compare it to your payoff.

Why does my DSCR look fine but the loan still won't size?

Usually because the lender uses a lower NOI than you do, after vacancy floors, management fees, reserves and tax trending, or because a different limit binds. Loan-to-value or debt yield can cap the loan below what coverage allows. Run your NOI through underwriting adjustments first, then check all three limits.

Does a longer amortization improve DSCR?

Yes. A longer amortization lowers the annual principal-and-interest payment, so the same NOI covers it more times. Going from 25 to 30 years can raise the loan a property supports when coverage is the binding limit. The trade-off is slower paydown and a larger balance at maturity. Interest-only periods have a similar effect if the lender tests coverage on the interest-only payment.