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DSCR Calculator
Compare cash flow available for debt service with required annual principal and interest payments.
DSCR Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
Cash flow of $250,000 divided by $175,000 of annual debt service produces a DSCR of 1.43x.
How this calculation works
The ratio uses the cash-flow and debt-service definitions supplied by the user. Lenders may define eligible cash flow differently.
How to interpret the result
A DSCR above 1.0x means modeled cash flow exceeds debt service, but the required cushion depends on the lender and risk profile.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
Cash flow of $250,000 divided by $175,000 of annual debt service produces a DSCR of 1.43x.
Common use cases
- Screen acquisition affordability.
- Test lender covenant headroom.
- Measure downside-case debt coverage.
DSCR Calculator FAQ
What DSCR does a lender require?
Requirements vary by lender and transaction. Treat the target ratio as a lender-specific assumption, not a universal threshold.
Which cash-flow number belongs in DSCR?
Use the lender’s definition of cash flow available for debt service. It may differ from net income, SDE, EBITDA, or free cash flow.
How is DSCR calculated?
The ratio uses the cash-flow and debt-service definitions supplied by the user. Lenders may define eligible cash flow differently.
How should I interpret the result?
A DSCR above 1.0x means modeled cash flow exceeds debt service, but the required cushion depends on the lender and risk profile.