Commercial mortgage affordability calculator (DSCR)
Estimate the maximum commercial mortgage your income can support using debt service cover (DSCR). Enter your annual income, rate, term and target cover.
- Indicative monthly payment·
- Annual debt service·
Indicative only. Not a quote, an offer or financial advice.
Commercial finance of this kind is not regulated by the Financial Conduct Authority. Any figures produced here are indicative only, not a quote or financial advice, and are subject to status, valuation and full lender approval. Take independent professional advice before borrowing.
What DSCR means, plainly
Debt service cover ratio, or DSCR, measures how comfortably income covers the loan payments. A DSCR of 1.25 means the income is 1.25 times the annual debt service, so there is a 25 percent buffer above what the loan strictly costs. Lenders want that buffer because it protects the loan if income dips, and on commercial healthcare lending a cover of around 1.25 times or more is a common starting expectation, though it varies by asset and lender.
This calculator works backwards from your income. It takes your annual net operating income or trading profit, divides it by the target DSCR to find the annual debt service the income can support, then sizes the largest capital and interest loan whose payments fit within that amount at the rate and term you enter.
Which income figure to use
Use the income that genuinely services the debt: for an investment let, the rent; for a trading business such as a pharmacy or care home, the sustainable net operating income or adjusted trading profit, not turnover. Lenders apply their own adjustments and look at the track record behind the figure, so treat the result as an indicative maximum rather than a guaranteed loan size.
Because the output is driven by your inputs, model a sensible income and a realistic rate. If you are unsure which income figure a lender would accept on your premises, that is exactly the kind of thing we work through when we set out indicative terms.
Questions
What is a good DSCR for a commercial mortgage?
Lenders typically want income to cover the annual debt service by around 1.25 times or more, giving a buffer of roughly 25 percent above the loan cost. The exact requirement varies by asset, sector and lender, with some looking for higher cover on more variable income. This calculator lets you set the target DSCR and see the loan it supports.
How does DSCR decide how much I can borrow?
The income is divided by the target DSCR to find the annual debt service it can support. The calculator then sizes the largest capital and interest loan whose payments fit within that amount at your chosen rate and term. A higher DSCR target or a higher rate reduces the supportable loan; a longer term increases it.
Is the maximum loan figure guaranteed?
No. It is an indicative maximum based on the income, rate, term and DSCR you enter. Lenders apply their own income adjustments, stress rates and policy, and assess the track record behind the figure. Use it to gauge affordability, then talk to us to test it against real lender appetite.
Talk to us about your deal
A calculator is a starting point. Tell us about the property and what you want to do, and we will come back with indicative terms, with no obligation.