Debt Service Coverage Ratio (DSCR) Calculator
Debt service coverage ratio from net operating income and annual debt service, plus maximum debt service and loan amounts at common DSCR thresholds.
Loan details
Your results
- Total annual debt service
- $100,000.00
- Net operating income
- $180,000.00
| DSCR | Max total annual debt service | Max new loan amount |
|---|---|---|
| 1.15 | $156,521.74 | — |
| 1.25 | $144,000.00 | — |
| 1.35 | $133,333.33 | — |
| 1.50 | $120,000.00 | — |
Debt service coverage ratio measures income available to cover annual loan payments. A DSCR of 1.25 means income is 1.25 times the annual debt service. Agricultural lenders commonly underwrite to 1.25 or higher, but standards vary by lender, enterprise type, and loan structure. This calculator does not evaluate eligibility.
Estimate only. Your lender's terms, fees, and payment structure may differ.
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How this is calculated
NOI = gross farm income - operating expenses
total debt service = existing annual + proposed annual
DSCR = NOI / total debt service
max debt at target = NOI / target DSCR
max new loan = (max debt - existing debt) discounted
at the rate and term you enteredNet operating income is farm income after operating expenses but before loan payments — if you subtract debt service from income before entering it, the ratio will be understated. Debt service is the annual total of principal and interest on existing loans plus the new loan you are modeling.
When you enter a loan amount, rate, and term instead of an annual payment, the annual debt service comes from the same amortization formula the other calculators use, at one payment per year. The threshold table inverts the ratio: it divides income by each target coverage level to get the maximum debt service, subtracts existing debt, and converts the remaining capacity back into a loan amount.
Assumptions: a single representative year of income, no capital expenditures or family living draw deducted, and no lender-specific adjustments for depreciation or inventory changes.
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