Business Loan DSCR Calculator

Debt & Financing

Use the Business Loan Affordability and Debt-Service Coverage Calculator

Estimate operating income available for debt service, requested-loan payment, combined DSCR, post-debt cash flow, and maximum affordable borrowing.

Policy-aware Accessible PDF and Excel

Combined debt-service coverage
Maximum affordable borrowing
Complete loan schedule

Before you calculate

Use normalized recurring revenue and operating expenses from reliable financial statements. Stress-test lower revenue, higher expenses, and higher rates before accepting a debt commitment.

What this calculator covers

Inputs you can model

Currency
Annual revenue
Annual cost of goods sold
Annual operating expenses
Existing annual debt service
Requested loan amount
Annual interest rate %
Loan term
Target debt-service coverage ratio
First payment date

Results you can review

Meets target coverage
Estimated loan capacity available
Requested loan within estimated capacity
Debt-service coverage ratio
Operating income available for debt service
Annual cash flow after debt service
Monthly requested-loan payment
New annual debt service
Total annual debt service
Maximum affordable monthly payment

Method, policy basis, and limitations

How the estimate is built

Revenue less cost of goods sold and operating expenses produces income available for debt service. The requested loan is amortized, combined with existing annual debt service, and compared with the selected target DSCR.

Important limitation

This is not a credit decision, covenant calculation, cash-flow forecast, or lender commitment. Taxes, owner drawings, working-capital needs, balloon payments, seasonal volatility, collateral, fees, and lender-specific EBITDA adjustments are excluded.

Your inputs

Enter the values you know. Required fields should be completed first, and optional fields can be left blank if they do not apply to your situation.

Preparing your input checklist Visible required fields are checked as you complete them.

Operating cash flow

Use normalized annual values from the same financial period. Exclude financing costs from operating expenses to avoid double-counting debt service.

Currency Required

Annual revenue Required Accepted range: 0 to 1,000,000,000,000.

Annual cost of goods sold Required Accepted range: 0 to 1,000,000,000,000.

Annual operating expenses Required Accepted range: 0 to 1,000,000,000,000.

Existing annual debt service Required Accepted range: 0 to 1,000,000,000,000.

Proposed loan

Enter the proposed principal, annual rate, term, and lender's target DSCR.

Requested loan amount Required Accepted range: 0 to 1,000,000,000,000.

Annual interest rate % Required Accepted range: 0 to 100.

Loan term Required Enter the term in years. Accepted range: 1 to 50.

Target debt-service coverage ratio Required Use the lender's covenant or underwriting target when available. Accepted range: 0 to 20.

First payment date Optional Optional. Adds calendar dates to the amortization schedule.

Calculating and validating policy inputs...

Your decision view will appear here

Run the calculator to see the planning signal, key measures, reconciliation detail, and any schedules or stress scenarios returned for these inputs.

Your results

The top cards show the most important answers first. Detailed schedules, scenario tables, and supporting notes appear underneath for deeper review.

Planning estimate

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