Business Loan Calculator — Debt Service Coverage Ratio (DSCR)

Adjust the sliders — your coverage ratio updates instantly.

Your numbers stay in your browser until you ask the advisor.

Your debt service coverage ratio

4.39×

At or above 1.25 — the ratio most commercial lenders look for. Your operating income covers the debt service with a real cushion.

Max loan at 1.25× DSCR $281,104

Annual debt service $15,937

Net operating income $70,000

Monthly payment $1,328

Estimates based on the assumptions above — real offers will differ.

Coverage ratio

4.39× DSCR

Gauge: a coverage ratio of 4.39 against a lender target of 1.25.

Make sense of these numbers

AI reading

Get a plain-language reading of your result — what looks solid, what to watch, and questions worth asking a lender.

Educational guidance, not financial advice.

Answer in

AI model

How to Read Your Result

Four things worth understanding before you talk to a lender.

DSCR is the number lenders lead with It compares what your business earns after operating costs to what the loan would cost each year. Below 1.0, the business does not earn its debt service.

1.25 is the common bar Most commercial lenders want a cushion above break-even — 1.25 is a widely used minimum, though it varies by lender and loan type.

Term and rate both move the ratio A longer term lowers the annual debt service and raises DSCR at the same loan amount — but raises total interest paid over the life of the loan.

Net operating income is the real driver The ratio starts with revenue minus operating costs. Improving that figure moves DSCR more than almost anything else.

What This Tool Does and Doesn't Do

The maths is the same debt service coverage ratio a commercial underwriter runs, and it works entirely in your browser. Nothing you type is sent anywhere unless you press "Explain my numbers", and even then only the figures go, never your name or contact details.

What it can't do is underwrite you. Lenders also look at collateral, personal guarantees, industry risk, and time in business, and each sets its own DSCR floor. Treat the result as a well-informed estimate that tells you which questions to ask.

Important: This is educational information, not financial advice. Confirm the figures with a qualified adviser or your lender before you commit to anything.

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