DSCR Calculator
Debt service coverage ratio: whether your business earns enough to cover loan repayments, the number banks check first.
How to use the DSCR calculator
- Enter net profit after tax, yearly, depreciation, interest on loans and loan principal repaid in the year.
- Read the dSCR at the top of the result, with cash available for debt service, debt service (interest + principal), how lenders see it underneath. It updates as you type.
- Change one input at a time to see what moves the answer most, then save the result with Copy link or Download PDF.
About this tool
Banks typically want a DSCR of at least 1.25–1.5 for term loans. Below 1 means the business can't cover repayments from its earnings.
Formula: DSCR = (PAT + depreciation + interest) ÷ (interest + principal)
Worked example
With net profit after tax, yearly of ₹9,00,000, depreciation of ₹1,50,000, interest on loans of ₹2,40,000 and loan principal repaid in the year of ₹6,00,000:
| DSCR | 1.54 × |
| Cash available for debt service | ₹12,90,000 |
| Debt service (interest + principal) | ₹8,40,000 |
| How lenders see it | Comfortable |
Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem
Questions people ask
What DSCR do banks need?
Most look for 1.25 or more on average over the loan's life, and won't lend below 1.
How can I improve DSCR?
Increase profit, extend the loan tenure to lower yearly principal, or refinance at a lower rate.