DSCR calculator
Will lenders say your church can afford the loan?
Check your debt service coverage ratio. The single number church lenders weigh most before approving a loan.
Your church's cash flow
$1,200,000
Total annual revenue, including tithes, offerings, designated giving.
70% of giving
Salaries, programs, utilities. Everything before debt service.
$0
Total existing loan payments per year (principal + interest).
$134,100
Annual payment on the loan you're considering.
Don't know your proposed debt service? Run the loan payment calculator →
Where every dollar of giving goes
The lender wants to see $1.20of NOI for every $1 of debt service. Here's how your dollars stack up.
Operating expenses$840,000
Current debt service$0
Proposed new debt service$134,100
Coverage cushion (NOI after all debt)$225,900
1.48× cushion above the lender minimum. You have room to absorb a soft giving year.
How DSCR works
Debt Service Coverage Ratio is the single number church lenders weigh most. It answers one question: does your cash flow comfortably cover the loan payments?
The formula
DSCR = Net Operating Income ÷ Annual Debt Service
Where NOI = annual giving minus operating expenses, and annual debt service = total loan payments (current + proposed) for the year.
What the bands mean
< 1.0x
Insufficient
Cash flow won't cover debt
1.0 to 1.2x
Tight
Below most lender minimums
1.2 to 1.5x
Adequate
Qualifies, little cushion
1.5x+
Strong
Best rates, best lenders