Interactive Tool

DSCR Calculator

Your Debt Service Coverage Ratio (DSCR) measures how many times your business income covers your debt payments. Most SBA lenders require 1.25x or higher — meaning $1.25 in income for every $1.00 of debt.

Your Business Cash Flow

Revenue minus operating expenses, before debt payments and taxes

$250,000

All current loan and lease payments (excluding the proposed SBA loan)

$0$0

Proposed SBA Loan

$
%
Proposed Monthly Payment
$6,470
$77,639/year

DSCR Result

Your DSCR
3.22x
Strong
Net Operating Income$250,000
Existing Debt$0
Proposed Loan Payments$77,639
Total Annual Debt Service$77,639

Well above the typical 1.25x requirement. Most lenders will view this favorably.

Additional Debt Capacity at 1.25x
+$122,361/yr

Annual debt service headroom before dropping below 1.25x

Find lenders that match your DSCR

Different lenders have different DSCR thresholds. LenderHawk shows you who lends to businesses like yours.

Search Lenders →
Spread Calculator·Affordability Calculator·SBA 7(a) Program·Methodology

This calculator provides estimates based on standard SBA lending guidelines. Actual DSCR requirements vary by lender, loan program, and deal specifics. Some lenders use adjusted EBITDA or add back owner compensation. Contact lenders directly for their specific requirements.