Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Stressed DSCR
1.15
Stressed NOI
$109,200
Base-case DSCR
1.52
Base-case NOI
$144,000
NOI decline under stress
24.2%
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How to use this
- 1Enter base annual gross rental income ($).
- 2Enter annual operating expenses ($).
- 3Enter annual debt service (p&i) ($).
- 4Enter additional vacancy stress (%).
- 5Enter rent decline stress (%).
- 6Read your stressed dscr on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Underwriting a deal at trailing or projected 95% occupancy and current market rent is fine as a base case, but the deal that only works at that exact assumption isn't a deal — it's a bet. This calculator lets you stress-test NOI by applying a vacancy shock and a rent-decline shock simultaneously, then recomputes NOI, the resulting DSCR against a fixed debt service figure, and how much cushion (or shortfall) remains. Lenders commonly underwrite to a minimum stressed vacancy of 7-10% even in tight markets, and many require a debt service coverage ratio that still clears 1.0x at a stressed rent roll before approving a loan. Running your own numbers through the same lens before you buy — not just at the lender's minimum stress level, but at a level that reflects real recession-era vacancy and rent softness for the asset type and market — separates deals with real margin for error from ones that only work if everything goes right.
Worked example
Using the values the calculator loads with:
Inputs
- Base annual gross rental income: 240000 $
- Annual operating expenses: 96000 $
- Annual debt service (P&I): 95000 $
- Additional vacancy stress: 10 %
- Rent decline stress: 5 %
Results
- Stressed DSCR: 1.15
- Stressed NOI: $109,200
- Base-case DSCR: 1.52
- Base-case NOI: $144,000
- NOI decline under stress: 24.2%
What each field means
Inputs
- Base annual gross rental income ($)
- The base annual gross rental income used in the calculation, measured in $. Starts at 240000 $ so you have a working example on load.
- Annual operating expenses ($)
- The annual operating expenses used in the calculation, measured in $. Starts at 96000 $ so you have a working example on load.
- Annual debt service (P&I) ($)
- The annual debt service (p&i) used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
- Additional vacancy stress (%)
- The additional vacancy stress used in the calculation, measured in %. Starts at 10 % so you have a working example on load. Accepted range: 0–50 %.
- Rent decline stress (%)
- The rent decline stress used in the calculation, measured in %. Starts at 5 % so you have a working example on load. Accepted range: 0–50 %.
Results
- Stressed DSCR
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Stressed NOI
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Base-case DSCR
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Base-case NOI
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- NOI decline under stress
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What stress levels should I actually use?
A common starting point is 5-10% additional vacancy stress and 3-7% rent decline stress layered on top of your base case, roughly modeling a moderate recession scenario for most residential and light commercial assets. Higher-volatility asset types like hospitality or coworking warrant more severe stress, sometimes 20%+ combined income decline.
What DSCR should survive the stress test?
Most experienced underwriters want stressed DSCR to stay at or above 1.0x — meaning the property can still cover its debt service even in the stress scenario — with 1.1-1.2x as a more comfortable margin. A deal that goes underwater on DSCR at a mild 10-15% combined income stress has very little real margin for error.
Does this account for expenses rising during a downturn?
No — this version holds operating expenses fixed and stresses only income, which is actually optimistic since expenses like insurance and bad debt often rise in a downturn even as income falls. For a more conservative stress test, also increase the operating expense input by 5-10% to reflect that dynamic.
Is this the same test lenders run?
It's similar in concept but lenders have their own specific stress underwriting standards that vary by loan program and property type, often codified in their term sheet or investment committee guidelines. Use this as a personal sanity check before you're deep into a deal, not as a substitute for the lender's actual underwriting.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cap Rate Expansion Sensitivity Calculator
See how much exit value drops if cap rates rise between purchase and sale.
Equity Multiple vs IRR Calculator
Compare total return multiple against annualized IRR for a deal.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Vacancy Stress Test / NOI Sensitivity Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/gross-up-vacancy-noi-stress-test
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/gross-up-vacancy-noi-stress-test" target="_blank" rel="noopener">Vacancy Stress Test / NOI Sensitivity Calculator — RevenueLab</a> (2026).</p>
Source: [Vacancy Stress Test / NOI Sensitivity Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/gross-up-vacancy-noi-stress-test) (2026).