GROFINEX

BUYING A BUSINESS

Debt service coverage ratio (DSCR) calculator

Check how much cash remains for loan payments after management and reinvestment allowances.

Your scenario

All amounts are in US dollars. Start with the example, then enter your numbers. Results update as you type.

Use verified earnings, not revenue. Do not use EBITDA here unless you adjust the manager field accordingly.

Fully loaded salary, benefits, and employer payroll costs; avoid deducting costs already retained in earnings.

Illustration only; enter your quote. This is the note rate, not an annual percentage rate including fees.

Fixed rate, monthly payments, no prepayment penalty assumed.

Include seller-note payments and other continuing obligations.

Your chosen screen, not a universal lender requirement.

Calculation inputs stay in this page’s memory and are not submitted as a lead. Requesting contact is a separate step.

ILLUSTRATIVE EXAMPLE

See what the numbers say.

Debt service coverage ratio
2.06
Adjusted cash available for debt
$220,000.00
Annual debt payments
$107,042.10
Cash remaining before buyer income tax
$112,957.90
Coverage cushion / shortfall
$75,493.17

Estimates, not quotes, approvals, appraisals or guaranteed returns.

How this calculator works

Illustrative debt coverage = (SDE − manager cost − capital reserve − working capital increase) / annual debt payments.

Assumptions to check

  • Debt payments include principal and interest on the acquisition loan plus any other annual payments you enter.
  • Lenders use their own adjustments and may assess household or global cash flow. Your entered target is a screening assumption; a ratio does not guarantee approval.

Method reference: bizbuysell.com. Independent GROFINEX implementation.