Capital
Debt Service Calculator
Whether the business's cash flow can actually carry the loan — the coverage ratio every lender checks first.
Inputs
- Loan amount
- Interest rate
- Term
- Monthly operating income
How to use this calculator
- Enter the loan amount, rate, and term to get the monthly payment.
- Add your monthly operating income to test whether the business can cover it.
- The coverage ratio shows how much cushion you have. Under 1.25× and lenders (and reality) get nervous.
What each term means
- Debt service
- The total loan payment (principal + interest) due each period.
- DSCR (coverage ratio)
- Operating income divided by debt service: the safety cushion on the loan.
- Amortization
- Paying a loan down to zero through equal periodic payments.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.