Free tool
Does your cash flow cover the repayments?
Debt service coverage ratio (DSCR) is one of the first things a lender checks. Work yours out before you apply, so the decision does not surprise you.
Fill all four fields to see your ratio.
This is a general educational estimate. Lenders define and calculate coverage in their own way and decide on much more than this ratio. Nothing you type here is sent or stored.
How it works
The calculation, in plain words
DSCR compares the cash your business generates in a year with the loan repayments due in that year. Here it is net profit plus depreciation plus interest, divided by interest plus principal repayments.
A ratio of 1.0 means the business generates exactly enough to meet its repayments, with nothing spare. Lenders generally look for a margin above that, and each lender sets its own threshold. If yours is low, the usual levers are a smaller amount, a longer tenor or stronger, documented cash flow.
Was your application declined? Read the common reasons and what to do next.
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