Project DSCR calculator with repayment schedule
Enter the term loan, its moratorium and repayment terms, and your projected profit and depreciation. The calculator builds the repayment schedule and works out the debt service coverage ratio (DSCR) for each year, plus the average and minimum, the way banks show it in a project report. RBI sets no single minimum DSCR, so compare the result with your lender's own policy.
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- Reviewed
Calculator
Year-wise DSCR
Full repayment schedule
Your figures stay in your browser. The link you copy contains them, so share it only with people you trust.
How this is calculated
DSCR for each year uses the formula common in bank project appraisal, the same one our project report guide describes:
DSCR = (PAT + depreciation + other non-cash charges + interest on the term loan) ÷ (interest on the term loan + principal repaid)
- Interest and principal come from the repayment schedule built here, so they always match the loan terms you enter.
- Average DSCR is the total of the numerators divided by the total of the denominators over the years in which principal is repaid. The simple mean of the yearly ratios is shown under the table, because lenders differ on which they use.
- Minimum DSCR is the lowest single-year figure.
The repayment schedule
- The whole loan is assumed to be disbursed in the first month. If yours is drawn in stages, the early interest will be lower than shown.
- Interest for each period is the opening balance × annual rate ÷ 12 (monthly) or ÷ 4 (quarterly).
- Moratorium: interest is either paid each period, or capitalised and added to the loan so that repayment starts from the higher balance.
- Equal principal instalments: the balance at the end of the moratorium is divided equally over the repayment periods, with interest on the reducing balance paid on top.
- EMI: a level instalment of P × i × (1 + i)n ÷ ((1 + i)n − 1), where i is the periodic rate and n the number of repayment periods.
- Each instalment is counted in the year (financial or loan year) in which it falls due.
What lenders expect
RBI does not prescribe a single minimum DSCR for ordinary term loans; each bank sets thresholds in its credit policy, by scheme and sector. Published examples include SBI's Surya Shakti solar finance (average gross DSCR of at least 1.20, counting all term loans) and Bank of Baroda's Arogyadham healthcare loan (average 1.75, and not below 1.25 in any year). If you have other term loans, add their interest and principal yourself, because a lender will look at total debt service.
Not a credit decision. Lenders also test sensitivity (lower sales, higher costs, delays), promoter contribution, security and track record. A healthy DSCR on optimistic projections will not get through appraisal on its own.
Questions people ask
What is a good DSCR for a term loan?
There is no single RBI-mandated minimum for ordinary term loans; each lender sets its own threshold by scheme and sector. Two published examples: SBI's Surya Shakti solar finance asks for an average gross DSCR of at least 1.20, and Bank of Baroda's Arogyadham healthcare loan asks for an average of 1.75 and at least 1.25 in every year. A DSCR below 1.00 means the projected cash does not cover the instalments.
Why does the calculator add interest back in the numerator?
PAT is calculated after charging interest. Adding the term-loan interest back gives the cash available to pay that interest and the principal, which is then compared with the interest plus principal falling due. This is the formula commonly used in bank project appraisals.
What is the difference between average DSCR and minimum DSCR?
The average (shown here as total cash available ÷ total debt service over the repayment years) tells the lender whether the project can repay overall. The minimum shows the tightest single year. Many lenders look at both, and some set a floor for every year, as Bank of Baroda does for Arogyadham loans.
Should interest during the moratorium be paid or capitalised?
It depends on the sanction. If interest is serviced during the moratorium, you need cash for it, often from promoter funds or built into the project cost as interest during construction. If it is capitalised, it is added to the loan, so the instalments after the moratorium are larger. Try both options to see the effect on DSCR.
Are years with only moratorium interest included in the average?
No. The average and minimum are calculated over the years in which principal is repaid. Years with only moratorium interest are shown in the table but marked as moratorium, because a ratio for a year still under construction would not be meaningful.
Should I use financial years or loan years?
Project reports and CMA data are usually prepared by financial year (April to March), so the default here maps each instalment to the financial year in which it falls due. Choose loan years if your projections run from the date of first disbursement.
Is anything I type stored or sent to Biz Corp Solutions?
No. The calculation runs entirely in your browser. Your inputs are only kept in this page's web address so you can copy a link and send the same calculation to your CA or banker.
Is your DSCR bankable?
Send us your projections and this calculation. We will tell you how lenders are likely to read your DSCR and structure the term loan with suitable banks, NBFCs and financial institutions.
This calculator gives an estimate for planning and discussion. It is not financial, legal or tax advice, and it is not a sanction or an offer. Lenders, regulators and government offices apply their own rules and may round or calculate differently; their figures prevail. Biz Corp Solutions arranges funding through partner banks, NBFCs and financial institutions, and lenders decide sanction, rates and terms. Last reviewed 5 October 2026.