Small Business Loan Debt Service Coverage Ratio Calculator
Lenders use the Debt Service Coverage Ratio (DSCR) to determine if your business or rental property generates enough income to cover loan payments. Calculate yours instantly below.
Debt Service Coverage Ratio
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Net Operating Income—
Annual Debt Service—
Surplus/Shortfall—
DSCR—
About this calculator
Calculate your Debt Service Coverage Ratio (DSCR) to see whether your business income sufficiently covers its debt obligations for loan qualification.
Frequently Asked Questions
What DSCR do lenders typically require?
Most lenders want a DSCR of at least 1.25, meaning income exceeds debt payments by 25%. Some accept 1.0-1.15 depending on the loan program.
What does a DSCR below 1.0 mean?
A DSCR below 1.0 means your income doesn't fully cover your debt payments, which is a red flag to lenders and signals negative cash flow.
How is DSCR calculated?
DSCR equals Net Operating Income divided by Total Annual Debt Service (principal and interest payments).