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DSCR calculator: can the business pay for the loan?

Run the same SBA loan against the SDE the listing states and the SDE the documents support, and see whether the deal covers its payments on each. Then find the price the supported number can carry. Pure arithmetic. Nothing is stored.

Pre-fill with example numbers so you can see what the tool does before typing your own
Clear all example numbers to add your own
1 · Start from the cash flow
Two SDEs, one owner's salary — the bank sees what is left after you pay yourself
The seller's number, every add-back included
Only the add-backs a document backs. Work it back in the SDE calculator
What it costs to have you run it — the bank deducts this first
Rent step-up, a manager you must hire, benefits — yearly, as a positive number
On the stated SDE—
On the supported SDE—
SDE − your salary − other changes
2 · Structure the deal
The SBA 7(a) rules as of SOP 50 10 8 — your lender may ask for more
Everything financed at closing beyond the price
—
Price + working capital + closing costs
Unborrowed, or a personal loan repaid from outside the business
No payments for the life of the SBA loan. Counts toward the injection up to half of it; excluded from debt service
—
SBA minimum is 10% of total project cost
A second note the business pays — it adds to debt service
—
Project cost − cash − standby note − paid note
Ask your lender; 7(a) rates float off prime
10 years is standard for a business acquisition
3 · Coverage — on the stated number, and on the supported number
Same loan, two cash flows
Coverage floor
Loans closing on or after October 1, 2026. Most lenders underwrite to 1.25x either way.
On the stated SDE
—
Enter the numbers
Cash available—
Annual debt service—
Cushion after payments—
On the supported SDE
—
Enter the numbers
Cash available—
Annual debt service—
Cushion after payments—
Price the supported number can carry
—
At the floor you chose, holding your cash, notes and working capital constant

Enter both SDEs, your salary, the price and the loan terms to see coverage on each number.

Your inputs, your arithmetic. Supported means a document backs the figure — it is not verification, audit, or assurance. The SBA terms are summarized from SOP 50 10 8 and 50 10 8.1 as published; your lender's underwriting governs. Not a lending decision, not financial advice.
VERITY BRAIN · ANALYSIS
Verity does this on the documents themselves.

Upload the listing, the returns, and the P&L — every figure traced to its source page, every contradiction surfaced as a question. First analysis of every deal is free.

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