Loan affordability (debt service cover) calculator

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote, tax computation or credit decision.

How to interpret the result

A debt service cover figure is a snapshot, not a verdict. What matters is whether the cash available for debt is comfortably ahead of repayments, with room to spare — a result that sits right on the edge of covering repayments leaves no margin if trading slows, a customer pays late, or costs rise unexpectedly. A wider margin tells a different story: the business could absorb a rougher month or quarter and still meet its obligations without drama.

It also helps to look at the trend rather than a single figure in isolation. A company whose cover has been improving over recent periods reads very differently to a lender than one with the same figure but a declining trajectory. If you're preparing to approach a lender, it's worth running the numbers using a cautious, realistic view of cash available for debt rather than an optimistic one — see the business borrowing affordability calculator for a fuller monthly cash-flow view.

Limitations and good practice

This calculator gives an illustrative ratio only — it doesn't replace management accounts, a cash-flow forecast, or a lender's own underwriting. It can't account for seasonality, one-off costs, or how reliably a company's customers pay, all of which shape whether cash available for debt on paper actually turns up in the bank account when repayments fall due.

Good practice is to revisit the figure periodically rather than treating a single calculation as fixed, and to stress-test it mentally against a slower trading period. Pairing this view with the debt service coverage ratio calculator can help sanity-check the inputs. Remember that Creditcorp lends to the company itself, and any real assessment will look well beyond this single ratio.