Free Tool
DSCR Calculator
Calculate your Debt Service Coverage Ratio and understand how income compares with debt obligations.
US$200,000
US$10,000US$2,000,000
Revenue minus operating expenses (before debt payments and taxes)
US$120,000
US$10,000US$2,000,000
Total annual principal + interest payments on all business debt
Formula: net operating income ÷ annual debt service. A result above 1.0 means the income figure entered is greater than the debt-service figure entered.
Your DSCR
1.67x
Income exceeds debt service
Based on the figures entered, net operating income is 1.67 times annual debt service.
Scenarios You Can Model
- 1.Increase revenue through new customers, pricing, or additional services
- 2.Reduce operating expenses to improve net operating income
- 3.Refinance existing debt at lower rates or longer terms
- 4.Pay off smaller debts to lower total debt service
This result is arithmetic, not an eligibility assessment. Financing partners may define income and debt service differently and apply their own criteria.
Frequently Asked Questions
A DSCR above 1.0 means the income entered exceeds the debt service entered, while a result below 1.0 means it does not. Financing partners set their own thresholds and may calculate income or debt service differently.
A financing partner may use DSCR alongside credit, collateral, liquidity, property and business factors. The ratio is not an approval prediction, and partners may define its inputs differently.
Net operating income (NOI) is your total revenue minus operating expenses, but before debt payments and income taxes. It includes rent, payroll, utilities, and other operating costs, but excludes loan principal/interest payments, depreciation, and taxes.
Want to Request a Financing Introduction?
Submitting our initial form does not itself run a credit check or guarantee an offer. A third-party financing partner controls eligibility and terms.
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