Free Tool
Debt Service Coverage Ratio Calculator
Estimate your DSCR in seconds and understand how lenders view your cash flow — before you apply anywhere.
Enter your numbers
Use annual figures from your most recent 12 months.
Cash left after operating expenses, before debt payments.
Principal + interest on all existing and proposed loans.
Your result will appear here
Enter both values above to calculate your Debt Service Coverage Ratio.
How Lenders Read DSCR
What your number actually means
Strong & bank-friendly
DSCR 1.25+
You're in solid shape. Most banks and SBA lenders consider this a healthy coverage ratio.
Acceptable with some lenders
DSCR 1.10 – 1.24
You may qualify with select banks or alternative lenders. Structure and lender fit will matter.
Break-even — high risk
DSCR 1.00 – 1.09
Most lenders will see thin margin for repayment. Restructuring debt or improving cash flow can help.
Below break-even
DSCR Below 1.00
The business doesn't currently produce enough cash to cover debt payments. Funding is challenging without restructuring.
DSCR is a guide — not a final answer. Loan structure and lender fit matter just as much as the number itself.
Ready to see what your business qualifies for?
Instead of guessing or applying blindly, get clarity first. Free consultation, no credit pull.