DSCR calculator
DSCR (debt-service coverage ratio) is net operating income divided by annual debt service. UK commercial lenders typically want 1.20 to 1.25, meaning income covers the loan payments with a 20 to 25% margin. Enter your income and the loan to see your ratio and the maximum loan it supports.
Rental or trading income after operating costs, before finance.
Commercial mortgages commonly run 15 to 30 years.
1.25+ is comfortable; below 1.0 fails.
Indicative estimate for limited-company business finance, not a quote or a credit decision. Rates you enter are your own; no credit search is run. Reviewed July 2026.
DSCR vs lender floor
Income vs debt service
Get an indicative dscr quote
No obligation, no credit search. We are a broker for limited-company business finance and may receive commission from the lender.
Worked example
For £90,000 dscr at 7.0% over 25 yr, the dscr is 1.52. Assessment: strong. Annual debt service: £59,369. Max loan at 1.25 DSCR: £848,921.
How it works
- DSCR = net operating income divided by the annual loan repayments (debt service).
- A ratio of 1.25 means income is 125% of the payments, a 25% safety margin.
- Lenders use it to size the loan: too high a loan drops the ratio below their floor.
- The maximum loan figure inverts this at a 1.25 target so you can see the ceiling.
Frequently asked questions
What is a good DSCR?
UK commercial lenders typically want 1.20 to 1.25. Above 1.25 is comfortable, 1.0 to 1.15 is tight, and below 1.0 means the income does not cover the payments.
How is DSCR calculated?
Divide net operating income (income after operating costs, before finance) by the annual debt service (the loan's monthly payment times twelve). 90,000 income against 72,000 of payments is a DSCR of 1.25.
How much can I borrow at a 1.25 DSCR?
The maximum loan is the amount whose annual payments the income covers at 1.25. The calculator inverts the repayment maths at your rate and term to show that ceiling.
Is this a quote?
No, it is an indicative planning tool. Lenders assess DSCR alongside LTV, the asset and covenant strength. CoreFi is a broker for limited-company commercial finance.
This calculator gives an indicative estimate of business finance for limited companies. It is not a quote, an offer, or a credit decision, and no credit search is run. CoreFi is a trading name of JG Core Ltd (company 16218779), a finance broker not a lender, and may receive commission from the lender. Figures reviewed July 2026.