Debt Service Coverage Ratio Calculator
Compare the cash flow available for debt service with the payments due, and see how much headroom is left.
Debt Service Coverage Ratio Calculator
NOI is common for property; EBITDA for operating businesses.
Items you treat as unavailable for debt service, such as cash taxes or maintenance capex.
The coverage level you want to test against.
Debt Service Coverage Ratio
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Cash Flow Available
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Total Debt Service
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Surplus / Shortfall
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Max Debt Service at Target
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Headroom vs. Current
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Cash flow vs. debt service
Assumptions & method
- Formula: DSCR = cash flow available for debt service (CFADS) ÷ total debt service.
- CFADS = the cash flow measure you select (NOI or EBITDA) minus any other deductions you enter, such as cash taxes or maintenance capex.
- Total debt service = principal + interest + lease payments, all for the same period as the cash flow. Enter lease payments as 0 if they are not part of your definition.
- Surplus or shortfall = CFADS − total debt service. Maximum supportable debt service at a target DSCR = CFADS ÷ target.
- Lenders and covenants define cash flow and debt service differently (for example EBITDA less capex, or including only certain leases). Use the definition in your own agreement if you have one.
- Coverage bands shown are descriptive only. They are not credit criteria, a lending decision, or advice.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is the debt service coverage ratio?
The debt service coverage ratio tests whether the cash a business or property generates is enough to cover scheduled loan and lease payments. A DSCR of 1.00× means cash flow exactly covers the payments, below that there is a shortfall, and above it there is a cushion. Because no single definition is universal, the calculator asks you to choose the cash flow measure and to list each debt service component. The target DSCR input turns the question around: given today’s cash flow, how large a total annual payment fits at your chosen coverage level? That figure is useful for sizing a loan or testing how much a drop in income the payments could absorb.