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DSCR calculator ?

Enter net operating income for the period and total debt payments (principal + interest) due over that same period. The calculator works out the DSCR.

Income from core operations before interest and income tax, but after operating expenses
The total of all loan payments due in the same period — principal plus interest

Result

DSCR

—

Surplus after debt service —

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

DSCR = net operating income ÷ debt payments for the period. A value of 1.4 means operating income is 40% more than what's needed to cover loan payments that period.

A DSCR below 1 means operating income isn't enough to even cover debt service — the business has to make up the gap from reserves, new borrowing or asset sales, and that's a warning sign regardless of industry.

Banks and other lenders often require a minimum DSCR as a loan condition — the exact threshold is always spelled out in the loan terms and differs by lender and industry, so no single number is given here on purpose: check the specific lender's requirements.

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