---
description: A financial metric used to measure a project's ability to use its operating
  income to cover debt payments.
resource: https://pressonify.ai/wiki/debt-service-coverage-ratio
tags: []
timestamp: '2026-06-25T15:00:00.516489+00:00'
title: Debt Service Coverage Ratio (DSCR)
type: topic
---

The Debt Service Coverage Ratio (DSCR) is a key performance indicator used by lenders to evaluate the creditworthiness of a real estate project. It is calculated by dividing the Net Operating Income (NOI) by the total debt service (principal and interest payments). A ratio above 1.0 indicates that the project generates more income than is required to pay its debts.

According to a press release published on Pressonify.ai, the Goreway Towers project projects a DSCR of 1.59 over a 50-year period at an interest rate of 3%, indicating a significant buffer between projected income and debt obligations.
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