Robert A. Bonavito, CPA PC

Commercial Loan Calculator

Use this calculator to estimate your debt service coverage with a new commercial loan. If your debt service coverage is greater than 1.25, including your new loan payment, you have a good chance of being approved.


  • Loan Amount. Total amount of your loan.
  • Amortization. Payment period in years.
  • Interest Rate. Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.
  • New Monthly Payment. Monthly payment for this loan.
  • Annual Verifiable Net Income. Your annual net income from IRS tax returns or other financial statements.
  • Annual Depreciation Expense. Since depreciation reduces your net income, but not your cash flow, we add back depreciation in calculating your total net cash income.
  • Other Non-Cash Charges. Like depreciation, these are other non-cash charges to your net income that should be added back to calculate your total net cash income for the year.
  • Real Estate Mortgage. Your monthly payment for any real estate mortgages.
  • Business Line of Credit. Your monthly payment for any business lines of credit.
  • Auto Loans. Your monthly payment for any auto loans.
  • Credit Cards. Your monthly payment for any credit cards.
  • Other Loans. Your monthly payment for any other outstanding loans.
  • Monthly Debt Payments Eliminated. Enter the amount, if any, of the monthly obligations you entered above that will be paid off by this new loan.
  • Debt Service Coverage (DSC). The debt service coverage is determined by dividing the total annual net cash income by the total annual debt service. If you have a DSC of 1.25 or higher, there is a good chance that you will be approved for your loan.