DPR Readiness
DSCR Calculator
The debt service coverage ratio (DSCR) shows how many times the cash generated by a project covers its loan obligations in a year. Enter your projected figures in ₹ lakh; the table recalculates as you type.
Illustrative figures. The calculator opens with sample numbers so you can see how it works. They are not from any real project; replace them with your own projections.
Enter projected figures (₹ lakh, per year)
| Year | Net profit after tax | Depreciation & non-cash charges | Interest on term loan | Principal repayment | DSCR |
|---|
Average DSCR
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Minimum DSCR
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Year of minimum DSCR
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Formula used
| Measure | How it is calculated |
|---|---|
| DSCR for a year | (Net profit after tax + depreciation and non-cash charges + interest on term loan) ÷ (interest on term loan + principal repayment) |
| Average DSCR | Sum of the numerators for all years ÷ sum of the denominators for all years |
| Minimum DSCR | The lowest year-wise DSCR over the repayment period |
How lenders read DSCR
Banks commonly look for a DSCR comfortably above 1 in every year of repayment, and they look at both the average and the minimum. The exact norm varies by lender, sector, loan size and the strength of the security, so check your bank's credit policy rather than relying on a single number.
A low year usually points to a repayment schedule that does not match the project's ramp-up. A moratorium, a step-up repayment or a longer tenor can fix it; test the effect with the EMI calculator. Some lenders compute DSCR including working-capital interest or on a cash-accrual basis; ask which method your lender uses.
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