Calculator
Affordability and DSCR calculator
Run the same calculation an underwriter runs: how much debt your cash flow actually supports, before you apply for more than that.
—Cash flow available for debt
—Monthly payment you support
—Approximate loan amount
—Resulting DSCR
This is the calculation an underwriter runs first. Most lenders want at least 1.15x and are comfortable at 1.25x. If the number this produces is far below what you were hoping to borrow, the fix is usually a longer term or retiring an existing payment — not a different lender.
What the ratio means
| DSCR | How a lender reads it |
|---|---|
| Below 1.00x | The business cannot service its debt. Decline. |
| 1.00x to 1.14x | No margin for error. Decline, or heavily conditioned. |
| 1.15x to 1.24x | Workable at many lenders, especially with collateral. |
| 1.25x to 1.50x | Comfortable. This is the target. |
| Above 1.50x | Strong. You should be negotiating terms. |
The two levers that actually move it
- Term length. The same debt over ten years instead of five cuts the payment dramatically and raises coverage without changing anything about your business. This is the strongest practical argument for SBA financing.
- Existing debt. It sits in the denominator. Retiring a high-payment obligation before you apply can move coverage more than a good quarter would.
About the add-backs
Underwriters add back non-cash and non-recurring items to net income: depreciation, amortization, interest on debt being refinanced, one-time expenses, and owner compensation above market. Be conservative here — an aggressive add-back schedule is the fastest way to lose credibility with an underwriter, and they check.