Calculator
DSCR & global cash flow worksheet
The buyer-side mirror of how SBA lenders compute Debt Service Coverage Ratio. Plug in trailing-twelve-month financials, manager-replacement comp, depreciation-equivalent CapEx, and your annual household burn — see the same numbers the credit memo will compute.
Adjusted EBITDA
$0
EBITDA + owner comp − mgr comp − CapEx
Annual debt service
$0
Monthly × 12, fully amortizing
Base DSCR
0.00x
—
Global cash flow ratio
0.00x
(Adj EBITDA + ext income − HH burn) / debt service
Stress: rate +100 bps
0.00x
—
How this is computed
Lenders run an adjusted EBITDA, not raw. Three adjustments matter:
- Owner replacement comp. Sellers underpay themselves and add back distributions. Lenders ignore the add-back and substitute a manager-replacement comp at market rate as a recurring operating cost.
- Depreciation-equivalent CapEx. If TTM CapEx is unrealistically low (deferred maintenance), the lender substitutes the higher of three-year average actual CapEx or annual depreciation expense.
- Global cash flow. The 7(a) is personally guaranteed; the lender adds your household burn to debt service and subtracts external income from EBITDA.
The stress test is your sanity check before the credit memo runs it. Most preferred lenders hold the line at 1.10x DSCR under stress; some at 1.05x.
For the longer rationale, read DSCR as SBA lenders actually calculate it.
Specific lender credit policies vary. This worksheet is for orientation, not a quote, and is not legal, tax, accounting, or investment advice.