business calculator
Debt Service Coverage Ratio (DSCR) Calculator
Calculate Debt Service Coverage Ratio (DSCR) and surplus cash flow to analyze debt repayment capacity.
Formula Verified by Dr. Marcus Sterling, PhD
Inputs
Results
Total Annual Debt Service$85,000
Debt Service Coverage Ratio
1.41x
Net Surplus Cash Flow
$35,000
Formula
DSCR & Surplus Formulas
Total Debt Service = Principal + Interest. DSCR = NOI / Total Debt Service. Surplus Cash Flow = NOI - Total Debt Service.Measures a business or property's cash flow available to pay current debt obligations.
Step by step
How the calculation works
- 1Input your Net Operating Income (NOI) for the target calendar year.
- 2Provide annual principal amortization payments.
- 3Enter annual interest expenses.
- 4Review the DSCR: ratios above 1.25x are generally required by commercial lenders.
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