Debt service coverage ratio (DSCR) calculator
DSCR is the headline ratio commercial lenders use to size a facility. Calculate yours, see what band it falls in, and get a sense of how much headroom you have to a 1.25x cover.
Coverage inputs
Your DSCR
1.50x
Comfortable bank-prime territory. Often unlocks better pricing and longer terms.
Headroom to 1.25x
£70,000 of NOI buffer
How much NOI could fall before you'd drop below the 1.25x band most banks underwrite at.
How lenders read DSCR
Below 1.0x
Stressed
DSCR below 1.0x means operating income doesn't cover debt service. Most commercial lenders will decline.
1x - 1.25x
Borderline
Just covering debt. Specialty and non-bank lenders may consider; bank lenders typically want more headroom.
1.25x - 1.5x
Healthy
Standard commercial-lending territory. Most banks and ABL lenders underwrite comfortably here.
1.5x - ∞
Strong
Comfortable bank-prime territory. Often unlocks better pricing and longer terms.
Important
This tool produces illustrative figures only. Actual rates, fees, and terms depend on the lender, your business profile, the security, and the structure agreed at underwriting. Tenttfinance does not present offers or run credit checks - we forward your details to a private lender or broker matched to your situation. Always verify final figures with the specialist you're introduced to.
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