In This Article What is the debt-service coverage ratio? Calculating the DSCR Using ... borrower’s planned use for the loan. The standard formula for calculating a DSCR involves dividing the ...

the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and interest payments).

The ICR is a financial metric used to determine whether a company can pay the interest on its outstanding debt. The formula for the interest coverage ratio is rather simple. Just divide the ...