DSCR Calculator (Debt Service Coverage Ratio)
The single number every commercial lender computes before saying yes or no. See your DSCR with a new loan added — and the max payment you could actually carry.
Your numbers
Net operating income — revenue minus operating expenses, before debt payments
All current loan payments + MCA debits
Your DSCR
DSCR bands lenders actually use
- 1.50+ — SBA and bank term loans, best pricing
- 1.25 – 1.49 — Standard bankable — most conventional lenders approve
- 1.15 – 1.24 — Alternative online lenders and asset-based finance
- 1.00 – 1.14 — MCA and short-term-only territory
- Under 1.00 — Cash flow doesn't cover debt; restructure before adding more
The formula is simple: DSCR = Monthly NOI ÷ Total Monthly Debt Service. Every lender computes it — most just don't tell you the number until they decline. Run it before you apply, not after.
If your DSCR is below 1.25 and you're already carrying MCAs, look at MCA consolidation or refinancing into a term loan before adding more debt.
Frequently asked questions
What DSCR do lenders want?
Many banks and SBA lenders look for about 1.25 or higher. Some alternative lenders accept lower ratios at a higher cost. Each lender sets its own threshold.
What counts as debt service?
All recurring debt payments: loan payments, equipment payments, lines of credit, and daily or weekly MCA debits converted to a monthly figure.
How can I improve my DSCR?
Raise net operating income, pay down or refinance expensive short-term debt, or choose a longer term so the new payment is smaller.