Know Your Number — Free DSCR Check
Know your number before your banker does. Enter rough figures and see your debt service coverage ratio against the 1.25x line ag lenders look for. No signup, no gate — nothing is required to see your number.
Also check your working capital ratio →For lenders: share this with your borrowers →
Cash available to pay debt
- Subtotal before living and taxes
- $390,000
- Available cash flow
- $283,000
Annual debt payments
Principal and interest on term debt — land, equipment, and capital leases. Leave operating-line interest out; it's already in net farm income.
- Total debt service
- $195,000
Stress test it
Drop net farm income and watch the ratio move. On a 1,200-acre corn and soybean operation, a 30-cent slide on 132,000 bushels is about $40,000 — enough to take a 1.45x down to 1.25x.
What the number means
- Below 1.00xCash flow does not cover payments — red flag.
- 1.00x – 1.24xThin coverage. Lender scrutinizes closely, may require conditions.
- 1.25xThe common minimum many ag lenders want to see.
- 1.50x and upComfortable margin of safety — where lenders prefer you.
The formula
DSCR = (Net Farm Income + Depreciation + Term Debt Interest + Non-Farm Income − Family Living − Income Taxes) ÷ (Principal + Interest on term debt and capital leases)
Lenders vary on the details — some exclude non-farm income, some use a three-year average. Treat this as the ballpark, and confirm the convention your bank uses.
Read: how lenders measure repayment capacity →Frequently asked questions
What is DSCR?＋
DSCR (Debt Service Coverage Ratio) measures whether your farm's cash flow is enough to cover its annual principal and interest payments. Lenders use it to gauge repayment capacity. A ratio of 1.25x means you generate 25% more cash than you owe — a cushion for a bad year.
What does the 1.25x line mean?＋
1.25x is the minimum many ag loan committees want to see. Below 1.25x and coverage is thin; below 1.00x means cash flow doesn't cover payments at all. At 1.50x and above, lenders see a comfortable margin of safety.
What inputs does this calculator use?＋
Net farm income, depreciation, term debt interest, non-farm income, family living withdrawals, income taxes, and total annual principal plus interest on term debt. The formula: (Net Farm Income + Depreciation + Term Debt Interest + Non-Farm Income − Family Living − Income Taxes) ÷ (Principal + Interest).
Is this calculator accurate?＋
It's a rough sketch from a few inputs. Your real DSCR comes off accrual-adjusted P&L, balance sheet, and cash flow statements that tie together — what TG360 builds from your Schedule F and paperwork. Use this for the ballpark; confirm the convention your bank uses.
Walk into renewal with the number that counts
TG360 turns your Schedule F, invoices, and bank statements into an accrual-adjusted P&L, balance sheet, and cash flow — with the lender ratio summary your banker looks at first. Free for 7 days.