Debt Service Coverage Ratio (DSCR) Worksheet

Use this worksheet to calculate your debt service coverage ratio.

Enter your business expenses, existing debt payments, and revenue below. If you plan on
borrowing additional funds, you can enter that balance below, too.
DSCR is used by lenders to determine your ability to make loan payments. Under 1 means you can
not afford the loan payment. Over 1 means you can afford the loan payment. Most lenders want to
see a DSCR of 1.2 or higher.

5 Year Term Loan 10 Year SBA loan

Annual Gross Income $2,000,000 $ 1,500,000.00
Expenses - Entered as Annual Costs
Rent $ 20,000.00 $ 20,000.00
Utilities $ 5,000.00 $ 5,000.00
Payroll $ 350,000.00 $ 350,000.00
Taxes
Inventory $ 500,000.00 $ 500,000.00
Supplies $ 35,000.00 $ 35,000.00
Credit Card Payments
Short Term Loan Payments $ 80,000.00 $ 80,000.00
Merchant Cash Advance Payments $ 150,000.00 $ 150,000.00
Miscellaneous Business Expenses $ 50,000.00 $ 50,000.00
Annual Operating Expenses $ 1,190,000.00 $ 1,190,000.00
Net Operating Income $ 810,000.00 $ 310,000.00
Total Capital in New Loan
$ 500,000.00 $ 500,000.00
(including additional funding)
Typical Interest Rate 13% 6%
Origination Fees of New Loan (Assuming 5%) $ 25,000.00 $ 25,000.00
Total Annual Loan Payments of New Loan
$ 136,518.44 $ 66,612.30
(Debt Service)

Estimated Monthly Payments $ 11,376.54 $ 5,551.03

Debt Service Coverage Ratio 5.93 4.65