Financing assumptions
Adjust the amounts, sliders and lender coverage requirements.
Commercial debt calculator
DSCR and Maximum Loan Calculator
Calculate your exact debt service coverage ratio, maximum additional loan, monthly payment and balloon balance.
Indicative results
Results update automatically when an assumption changes.
Above selected DSCR target
The requested loan appears supportable under the selected assumptions.
Debt service capacity used
0%
Includes existing and requested annual debt service.
Current DSCR
0.000x
Before the requested loan
Proposed DSCR
0.000x
After the requested loan
Maximum additional loan
$0
At a target DSCR of 1.250x
Requested monthly payment
$0
Principal and interest estimate
Balloon at maturity
$0
Remaining balance at loan maturity
Minimum CFADS required
$0
For the requested loan and target DSCR
Debt service breakdown
Maximum total annual debt service
$0
Existing annual debt service
$0
Requested loan annual debt service
$0
Available annual debt service capacity
$0
What is DSCR?
The debt service coverage ratio measures the cash flow available to meet scheduled principal and interest payments.
DSCR = Annual CFADS ÷ Total Annual Debt Service
A DSCR of 1.250x means the borrower generates 1.25 in qualifying cash flow for every 1.00 of annual debt service. The appropriate requirement depends on the lender, transaction, collateral and stability of cash flow.
Current versus proposed DSCR
Current DSCR uses existing debt obligations. Proposed DSCR includes the estimated annual payment for the requested loan.
How maximum debt is estimated
The calculator divides annual CFADS by the selected target DSCR to estimate maximum total annual debt service.
- Existing annual debt service is deducted from total capacity.
- Remaining capacity is converted into a monthly payment.
- The payment is converted into an indicative loan principal.
- A shorter loan term produces a balloon balance at maturity.
Actual debt sizing may also depend on leverage, collateral coverage, reserves, guarantees, covenants and the quality of cash flow.
Important information
This calculator provides indicative estimates for preliminary planning only. It is not a credit decision, commitment, financing offer or guarantee of approval. Final terms remain subject to underwriting, due diligence, documentation, KYC, AML and the requirements of the relevant financing provider.
Frequently asked questions
What is a good DSCR for a business loan?
There is no universal minimum. The required DSCR depends on the lender, transaction, industry, collateral and stability of cash flow. The calculator allows an exact target from 1.000x to 3.000x.
Should I use EBITDA or CFADS?
CFADS is generally more precise because it reflects cash flow available for debt service. EBITDA may require adjustments for cash taxes, maintenance capital expenditure and working-capital movements.
How is the maximum loan calculated?
The calculator estimates permitted annual debt service from CFADS and the target DSCR, deducts existing obligations and converts the remaining capacity into an indicative loan principal.
What is a balloon payment?
A balloon payment is the remaining balance due when the loan term is shorter than its amortisation schedule. It may need to be repaid or refinanced when the loan reaches maturity.
About Financely
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Financely is a transaction-led structured-finance advisory and arranging platform for post-revenue companies, sponsors, acquirers and transaction parties seeking institutional financing solutions.
We help clients prepare financing files, structure transactions, identify suitable capital providers and manage the placement process on a best-efforts, mandate-based basis.
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