Free Tool
DSCR Calculator
Calculate your Debt Service Coverage Ratio (DSCR) to understand how lenders will view your ability to take on new debt. Most lenders require 1.25x or higher.
$
$
Excludes existing debt payments
$
Current loan, lease, and debt payments
$
Your DSCR (with new loan)
0.00x
Net Operating Income$0/yr
Total Debt Service$0/yr
Current DSCR (no new loan)0.00x
Max Monthly Payment (1.25x)$0
DSCR Rating Scale
Below 1.0xUnable to cover debt
1.0x - 1.24xAcceptable (some lenders)
1.25x - 1.49xGood (most lenders)
1.5x+Excellent
Understanding DSCR
What is DSCR?
Debt Service Coverage Ratio measures your business's ability to pay its debt obligations from operating income.
DSCR = Net Operating Income ÷ Total Debt Payments
Why Lenders Care
- • Shows if you can afford the loan
- • Indicates financial cushion
- • Predicts repayment ability
- • Required for many loan types
- • Higher DSCR = better rates