DSCR calculator
Enter your profit, depreciation and loan payments. See the debt service coverage ratio lenders look at.
- Lender's formula
- Surplus or shortfall
- Free, no sign-up
Business on the side?
Business income changes your return and sometimes your deadlines. Our experts handle the tax side.
Questions people often ask
Which ITR form do I need?
ITR-3 for business income, or ITR-4 if you use presumptive tax.
Do I need a tax audit?
Only above the turnover limits in section 44AB; see our tax audit check.
The lender's question
Can cash cover the loan?
- Cash available: profit + depreciation + interest.
- Debt service: interest + principal due.
- DSCR = the first ÷ the second.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Individuals with business or professional income Income Tax Department
Common questions
What is DSCR?
Cash available for debt service ÷ loan payments due (interest + principal) in the year.
What DSCR do banks want?
Often at least 1.25; some ask for 1.5 or more.
What goes into cash available?
Net profit after tax, plus depreciation, plus interest on term loans, plus other non-cash expenses.
What if DSCR is below 1?
The business doesn't generate enough cash to pay its loans; lenders will see this as risky.
How do I improve it?
Raise profit, reduce costs, or stretch the loan over a longer tenure to lower yearly principal.
