Servicing Calculator. A clearer first-pass view.
Build an indicative commercial servicing view across recurring income, defensible add-backs, rental income, existing commitments, proposed debt, surplus cash flow, and debt-service coverage.
Use a worked commercial scenario to teach how income adjustments and annual debt service change surplus cash flow and DSCR before a lender-specific assessment.
Keep the source figures visible
Operating income
The recurring earnings base supported by the available financial information.
Adjustments and add-backs
Clearly described amounts that still require evidence and lender acceptance.
Rental income
Property income with a configurable shading assumption where appropriate.
Debt commitments
Annual service for existing facilities and the proposed new debt structure.
Turn inputs into a reviewable signal
Adjusted cash flow
The indicative income base after entered adjustments and shaded income.
Annual debt service
The combined annual commitment for existing and proposed facilities.
DSCR
Adjusted cash flow divided by annual debt service.
Surplus
The remaining indicative cash flow after annual debt service.
Established trading business
An established business has $520,000 of recurring operating cash flow, a $40,000 proposed add-back, and $60,000 of rent shaded to 80%.
Indicative DSCR = ($520,000 + $40,000 + $48,000) ÷ $270,000 = 2.25×.
Before lender-specific adjustments, tax treatment, or other policy changes.
A scenario signal rather than a lender approval threshold.
Adjusted cash flow less the entered annual debt service.
Move from raw figures to a better review conversation
The tool organises an early scenario. Keep the evidence, assumptions, and professional review attached to the result.
Build the income view
Enter recurring earnings, then separate each adjustment so it can be reviewed.
Map the debt stack
Add existing commitments and model the proposed facility terms.
Test the result
Review DSCR and surplus, then stress the assumptions before relying on the output.
Keep the result in context
The calculator is an indicative scenario tool and does not reproduce every lender's servicing policy.
Add-backs, rental shading, assessment rates, loan terms, and repayment methods can differ by lender and transaction.
Entered income should be supported by current financial information and reviewed for recurrence.
A favourable ratio does not address security, conduct, credit history, leverage, purpose, or lender appetite.
Useful for brokers & broker educators
Use a worked commercial scenario to teach how income adjustments and annual debt service change surplus cash flow and DSCR before a lender-specific assessment.
About the Servicing Calculator
Use these answers to understand the tool's purpose before relying on its indicative output.
What is DSCR?
Debt-service coverage ratio compares an indicative cash-flow amount with annual debt service. A DSCR of 1.50× means the entered cash flow is one and a half times the entered annual debt commitment.
Is there one minimum DSCR for commercial loans?
No. Required coverage varies by lender, product, industry, security, repayment structure, and the reliability of the income being assessed.
Does this calculator determine borrowing capacity?
It provides an indicative servicing view. A complete borrowing-capacity assessment also considers lender policy, leverage, security, purpose, terms, credit position, and other commitments.
Use the calculator, then keep the assumptions attached to the result.
The result is an indicative workflow signal. Broker, adviser, valuer, accountant, and lender review still applies to the full scenario.