Debt Service Coverage Ratio Calculator
Calculate your Debt Service Coverage Ratio (DSCR) to assess business loan eligibility. Determine your company’s ability to repay debt obligations with our comprehensive financial calculator.
Step 1: Financial Information
Understanding DSCR
The Debt Service Coverage Ratio measures a company’s ability to service its debt. A DSCR of 1.0 means the company generates exactly enough income to cover its debt payments. Lenders typically require a DSCR of 1.25 or higher.
Step 2: Additional Parameters
About DSCR Requirements
Most commercial lenders require a DSCR of at least 1.25x. Higher ratios indicate stronger financial health. DSCR below 1.0 indicates insufficient income to cover debt obligations, which may lead to loan denial.
DSCR Results
Debt Service Coverage Ratio
Industry DSCR Comparison
| Industry | Average DSCR | Minimum Requirement | Risk Level |
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Financial Breakdown
DSCR Formula
Debt Service Coverage Ratio = Net Operating Income / Total Debt Service
To calculate DSCR: Divide your annual Net Operating Income (revenue minus operating expenses) by your annual Total Debt Service (principal + interest payments). A ratio above 1.0 indicates sufficient income to cover debt obligations.
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