DSCR Calculator

Fast, accurate, and free online Debt Service Coverage Ratio (DSCR) Calculator tool that runs directly in your browser.

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Debt Service Coverage Ratio (DSCR) Calculator

Estimate debt service capacity: DSCR = Cash Flow / Debt Service.

EBITDA / NOI

PLN

Tax

PLN

Interest

PLN

Capital repayments

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DSCR Calculator 2025 - precise debt service ratio

The DSCR calculator allows you to calculate the ratio of operating cash flows to annual debt payments. In practice, DSCR answers the question whether the activity or project generates sufficient cash flow to safely cover principal and interest installments. The tool accepts key data such as EBITDA or NOI, interest costs, principal repayment, reserves, sustaining CAPEX and taxes. The result is complemented by the interpretation of thresholds and recommendations for corrective actions.

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Formulas and theory

DSCR definition

DSCR (Debt Service Coverage Ratio) measures the ability to service debt from current operating cash flows. A value of 1.0 means that the cash flows are exactly sufficient to repay the debt. A value above 1.0 suggests a safety buffer, and below 1.0 indicates a probable financial gap.

Basic formula:

DSCR = Operating cash flow available for debt servicing / Total debt servicing

The most commonly used approximations of operating cash flows:

EBITDA - Sustaining CAPEX - cash taxes ± changes in working capital
NOIin commercial real estate, where servicing debt is compared to NOI after operating costs.

Total debt serviceis the sum of annual principal and interest payments (sometimes with adjustments for commissions and fees).

Variants and nuances of calculation

DSCR based on EBITDA:popular in company analysis, especially when the sustaining CAPEX is stable and predictable.
NOI-based DSCR:used in income properties where NOI is a good reflection of operating cash flow.
Forward DSCR:estimated on the basis of cash flow forecasts and debt schedule for subsequent periods.
Minimum DSCR in the horizon:key covenant parameter - the lowest DSCR in the chain of periods must be ≥ the required threshold.

Interpretation of thresholds

DSCR < 1.0- insufficient flows, high risk of violation of covenants or arrears in repayment. Necessary adjustment of the financing structure or operational activities.

DSCR 1.0 - 1.2- low buffer. Often acceptable only with low variability of flows and short financing period.

DSCR 1.2 - 1.5- market standard for many projects and investment loans. It gives a reasonable margin of safety.

DSCR > 1.5- comfortable buffer, usually favorable financing conditions and lower risk margins.

What influences DSCR

The amount of EBITDA or NOI, including sensitivity to sales volume, rental rates and costs.
The level of the sustaining CAPEX and cash reserves required by the lender.
The amount of the interest margin, reference rate, commission and principal repayment schedule.
Tax structure and interest tax shield.
Changes in net working capital affecting operating cash.

Examples

Example A - DSCR based on EBITDA

Assumptions:EBITDA 1,200,000 per year, sustaining CAPEX 120,000, cash taxes 60,00