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ClearValue Banking

Business finance

DSCR Calculator

Debt Service Coverage Ratio is the number lenders read before almost anything else on your file. Run yours here first.

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DSCR Calculator

Debt Service Coverage Ratio — the underwriting bar across SBA, bank, and most non-bank lenders.

$

Net cash from operations — revenue minus operating expenses, before debt service and taxes.

$

Total annual principal + interest payments across all existing debts (and any loan you're modeling).

DSCR

1.50×

Tier: Strong (bank + SBA eligible)

Well above the bank-tier DSCR floor of 1.25 and the SBA floor of 1.15. Files at this coverage typically qualify for the best pricing across product categories.

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Educational estimate only. Actual quoted rates and terms depend on lender underwriting, your file (credit, time-in-business, revenue, deposits, existing debt), and current market conditions. Ranges vary by lender and jurisdiction. ClearValue Banking is not a lender, broker, or financial advisor — the lender makes the final credit decision on file. Not a binding pre-qualification and not an offer of credit. DSCR thresholds vary by lender; SBA SOP 50 10 sets 1.15 as the floor for 7(a) loans. Bank-tier programs commonly require 1.25+.

Frequently asked

What DSCR do I need to qualify for a bank or SBA loan?

Most bank-tier term lenders want to see 1.25 or higher; SBA's SOP 50 10 sets its floor at 1.15. Below 1.0 means net cash flow doesn't even cover existing debt service — most credit-led products decline at that point, though revenue-based financing can sometimes still work off deposit consistency.

Is DSCR the same as a personal debt-to-income ratio?

No — DSCR is a business-level metric (annual net operating cash flow divided by annual debt service), used by commercial and SBA lenders to underwrite a business. Personal DTI is a separate consumer-lending measure. A business owner's personal DTI and their company's DSCR can point in very different directions.

Does ClearValue Banking make lending decisions?

No. We're an independent education and comparison publisher for deposit accounts, not a lender or broker. This calculator is a read on your own numbers so you walk into a lender conversation, or a banking decision, with a clearer picture — not a pre-qualification or an offer.