Debt Service Coverage Ratio Calculator
Compare cash available for debt service with scheduled principal and interest payments for the same period.
Debt service coverageExample1.5×
- Total scheduled debt service
- $40,000
- Cash after debt service
- $20,000
How to calculate debt service coverage ratio
DSCR = cash available for debt service ÷ (scheduled principal + interest)
Enter cash available under the definition in your loan agreement. Lender definitions vary; this does not calculate a covenant numerator or apply a minimum lending threshold.
Worked example
An illustrative scenario. “Reset to example” restores it in the calculator.
- Cash available for debt service
- $60,000
- Scheduled principal payments
- $30,000
- Scheduled interest payments
- $10,000
Debt service coverage: 1.5×
Debt Service Coverage Ratio FAQ
What does a result below one mean?
Entered cash available is less than the entered debt payments. The absolute shortfall is shown separately. A lender may use adjustments that change the result.