Interactive tool

DSCR Calculator

The debt service coverage ratio is net operating income divided by total debt service — principal plus interest. Enter your numbers to get your DSCR, see whether it clears your lender's minimum, and find the largest annual payment your cash flow actually supports.

Formula: DSCR = net operating income ÷ total debt service, where debt service is principal + interest. Yours: $1,800,000 ÷ $1,200,000.

Your coverage

1.50x

Clears the 1.25x minimum

Total annual debt service

$1,200,000

Max debt service at 1.25x

$1,440,000

NOI cushion above the covenant

$300,000

NOI needs to hold at $1,500,000 to stay at 1.25x.

Simplified estimate using the standard DSCR definition. Credit agreements define NOI and debt service precisely — add-backs, capital leases, cash taxes, and required reserves all move the number a lender computes.

A DSCR below the covenant is a breach even when every payment has been made on time, which is why the ratio is worth watching monthly rather than at year end. For the full picture against both of the covenants that bind middle-market borrowers, run the Covenant Headroom Calculator or read the walkthrough in DSCR Ratio: What It Is & How to Calculate. If the ratio is tightening, a turnaround CFO builds the bridge to your credit agreement and the plan back into compliance. Book a working session.

Book a working session.

A 20-minute call, a clear read on your numbers, and a straight answer on whether a fractional CFO is the right call right now.