Debt Service Coverage Ratio (aka: DSCR) is the ratio of the net operating income to debt payments on a piece of investment real estate.

1. In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments.

2. In government finance, it is the amount of export earnings needed to meet annual interest and principal payments on a country's external debts.

3. In personal finance, it is a ratio used by bank loan officers in determining income property loans. This ratio should ideally be over 1. That would mean the property is generating enough income to pay its debt obligations.

The formula used to find the debt service coverage ratio is as follows:
DSCR = Net Operating Income / Total Debt service