What is DCR?
Debt Coverage Ratio = NOI ÷ annual debt service, the lender’s primary cushion metric. A 1.39x DCR means $1.39 of NOI for every $1.00 of required principal and interest. (Used interchangeably with DSCR, though lender definitions vary.)
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.