DSCR Calculator
Compute Debt Service Coverage Ratio (DSCR) used by Indian banks to assess loan repayment capacity. Free DSCR calculator with verdict and lender benchmark.
अपना परिणाम कैलकुलेट करें
अपने आँकड़े दर्ज करें। बदलाव के साथ अनुमान और चार्ट अपडेट होंगे।
DSCR
- DSCR
- 1.67
- निर्णय
- Strong
- बैंकों को आमतौर पर ऋण देने के लिए ≥ 1.25 की आवश्यकता होती है
आपके आँकड़ों का मतलब
Your income covers debt payments 1.67 times over.
Banks typically look for a DSCR of at least 1.25 (rule of thumb), so lenders would see this as comfortable cover.
Income could drop 40.0% before it no longer covers debt payments.
This is your safety margin against a slow season, a lost client or a rate hike.
Your income could support about ₹10,00,000 more in debt service at a 1.25 DSCR.
Treat this as a rough ceiling; lenders also weigh collateral, credit history and how stable your income is.
अपनी गणना समझें
Debt Service Coverage Ratio, or DSCR, is the single most important number Indian banks use to assess whether a business can comfortably repay a loan. It measures how many times the annual debt service (principal plus interest) is covered by the annual net operating income. A DSCR of 1 means just barely covered; 1.25 means a 25 percent buffer; 1.5 means very comfortable. The DSCR calculator on this page gives you the ratio and a plain English verdict on lending viability.
एक नज़र में लाभ
Industry standard formula
DSCR equals Net Operating Income divided by Total Debt Service. Both numbers are annual, both expressed in the same currency, both before tax. The calculator implements the standard definition that all major Indian lenders use.
Verdict in plain English
The calculator returns a label (Strong, Adequate, Weak, Unviable) based on the resulting ratio, which makes the answer immediately interpretable without finance jargon.
Useful for loan applications
Most Indian banks ask for DSCR projections in their term loan application. Run the numbers in advance to make sure your projections clear the lender's threshold before submitting.
Useful for refinancing decisions
Compare DSCR under your existing debt structure versus a proposed refinancing. A refinancing that improves the DSCR materially is usually worth the transaction cost.
DSCR Calculator कैसे उपयोग करें
- 1
Enter Net Operating Income
Annual income from operations, before interest, tax, depreciation and amortisation. For most businesses this is EBITDA. Use a conservative estimate based on the last 12 months actual numbers, not best case projections.
- 2
Enter Total Debt Service
Annual principal and interest payable on all debt obligations. Include the proposed new loan you are evaluating. The calculator gives you the DSCR including the new loan, which is what the lender will compute.
- 3
Read the DSCR and verdict
If the DSCR is 1.5 or above, you have strong loan repayment capacity. Between 1.25 and 1.5 is adequate for most banks. Between 1 and 1.25 is weak and may face rejection. Below 1 means the business cannot service the proposed debt from current operations.
उदाहरण
Term loan DSCR example
A trading business earns ₹18,00,000 of annual net operating income. Its existing and proposed loans need ₹12,00,000 a year in EMIs (principal plus interest). DSCR = ₹18,00,000 ÷ ₹12,00,000 = 1.5.
- Net operating income
- ₹18,00,000 a year
- Annual debt service
- ₹12,00,000
- DSCR
- 1.50
- Verdict
- Strong
Income could fall by a third before the loans stop being covered. Adding another ₹2,40,000 of annual EMIs would bring DSCR down to 1.25, the edge of the Adequate band.
इसकी गणना कैसे होती है
DSCR = net operating income ÷ total debt service, where both figures cover the same period and debt service includes principal and interest.
The verdict follows fixed bands in the code: 1.5 or more is Strong, 1.25 to below 1.5 is Adequate, 1.0 to below 1.25 is Weak and anything under 1.0 is Unviable.
If total debt service is zero, the ratio isn't applicable and the result reads "No debt service". These bands are planning guides; each lender sets its own minimum.
मान्यताएँ और सीमाएँ
- Income and debt service must cover the same period. Debt service includes principal and interest.
- With zero debt service, the coverage ratio is not applicable; the result says no debt service rather than unviable.
- Verdict bands are planning heuristics, not universal RBI minimums or lender approval criteria.
अक्सर पूछे जाने वाले प्रश्न
What is a healthy DSCR?
Indian commercial lenders typically require a minimum DSCR of 1.25 for term loans and 1.5 for project finance and large infrastructure deals. A DSCR of 2 or higher is considered very strong and gives the borrower meaningful negotiating room on rate, tenure and security.
How is DSCR calculated?
DSCR equals Net Operating Income divided by Total Debt Service. Net Operating Income is annual income from operations before interest, tax, depreciation and amortisation (essentially EBITDA). Total Debt Service is annual principal repayment plus interest payment on all debt. Both numbers are pre tax.
Should DSCR include depreciation?
Most lenders use EBITDA based DSCR (which adds back depreciation and amortisation to operating profit). This treats depreciation as a non cash item available to service debt. Some conservative lenders use Operating Profit based DSCR which keeps depreciation as a cost. Always clarify with the lender which version they require.
What if my DSCR is below the lender's threshold?
Three options. Restructure the loan to a longer tenure, which lowers annual debt service and improves DSCR. Reduce the loan amount, which lowers debt service. Increase income through operational improvements, expansion or cost cutting before reapplying. The calculator helps you find the loan size and tenure combination that meets the lender's DSCR.
Is DSCR the same as Interest Coverage Ratio?
No. Interest Coverage Ratio (ICR) divides EBIT by interest expense alone, ignoring principal repayment. DSCR is broader and includes both interest and principal. ICR can look healthy while DSCR is weak, especially for loans in the early years where principal repayment is low. Lenders care about DSCR for the full repayment obligation, ICR for just the interest serviceability.
How do MSMEs improve DSCR for loan applications?
Common levers include extending the loan tenure (lowers annual debt service), formalising additional income streams (rental income, sub leasing), bringing in promoter equity or a quasi equity loan that reduces external debt service, or providing additional collateral that lets the bank classify a portion as a different facility. The calculator helps you size each lever.
Does DSCR matter for personal loans?
Personal loans use Fixed Obligations to Income Ratio (FOIR) or EMI to Income Ratio rather than DSCR. The concept is similar (income should comfortably cover debt obligations) but the specific formula differs. The loan eligibility calculator on this site uses the EMI to income approach for retail loans.