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
3.64
Strong — SBA/bank ready
Monthly buffer
$20,300
NOI after all debt
Total debt service
$7,700
Max affordable new payment
$17,900
To stay at 1.25 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.
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