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Loan payment and DSCR

Before a bank looks at your business, it calculates one number: debt service coverage. This works out the payment on a proposed loan, folds in what you already owe, and shows the coverage ratio a lender will see — along with the largest loan your current income actually supports.

The loan
Coverage

Net operating income or EBITDA, before debt service.

Most commercial lenders want 1.25× or better.

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These tools are educational and produce estimates from the figures you enter. They are not tax, legal, investment, or accounting advice, and they do not create a client relationship. Talk to us before acting on a number you see here.

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