Ratios calculator

Debt Service Coverage Ratio Calculator

Compare lender-defined annual income with required annual debt payments.

Result

Debt service coverage ratio Not calculated

Lenders may define cash flow and debt service differently. Reconcile the inputs to the exact loan covenant or application definition.

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Method

Formula and inputs

Estimated DSCR = annual income under the lender’s definition ÷ annual debt service.

Use income and required payments for the same annual period. Check the loan agreement or application for the lender’s definitions and permitted adjustments.

Ratios guide

How to use the debt service coverage ratio calculator

Worked example

Debt service coverage: calculation example

$150,000 of lender-defined annual income divided by $100,000 of annual required debt payments gives an estimated 1.5 DSCR.

Lenders may define cash flow and debt service differently. Reconcile the inputs to the exact loan covenant or application definition.

Common question

Understand the result

Does a 1.5 DSCR guarantee loan approval?

No. Lenders assess other factors and may calculate coverage differently. This result compares only the two amounts entered.

Debt Service Coverage Ratio Calculator

Turn the result into better questions

Formula and inputs

Debt service coverage: calculation example

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