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Deal Alert AI — SBA Acquisition Pack
SBA 7(a) Acquisition Tool

DSCR Calculator

Know whether your deal qualifies for SBA financing before you approach a lender. Results update in real time.

SBA requires DSCR ≥ 1.25  ·  Most lenders prefer 1.35+
1 Loan Terms
Business Purchase Price
$
Down Payment % SBA minimum: 10%
%
Loan Amount (auto-calculated)
$450,000 Auto
Interest Rate Current SBA prime+2.75%
%
Loan Term Standard SBA: 10 years
yrs
Monthly Payment (auto-calculated)
$6,213 Auto
Annual Debt Service (auto-calculated)
$74,556 Auto
2 Business Cash Flow (Trailing 12 Months)
Annual Revenue
$
Annual Operating Expenses Excl. owner salary & depreciation
$
Owner Salary Add-Back Existing owner's comp to add back
$
Net Operating Income (NOI / SDE) (auto-calculated)
$210,000 Auto
SDE Calculation
Revenue
− Operating Expenses
+ Owner Salary Add-Back
= SDE / NOI
Add-back represents the seller's compensation, perks, and discretionary expenses that wouldn't continue under new ownership or would be replaced by your own draw.
3 DSCR Result & Qualification Analysis
Your DSCR
2.82x
Qualifies — Strong Coverage
Your NOI covers annual debt service by 2.82x — well above the SBA minimum of 1.25x and most lender preferences of 1.35x. This deal has strong cash flow coverage.
0x 0.5x 1.0x 1.25x SBA min 1.5x 2.0x+
Monthly Payment
$6,213
Principal + Interest
Monthly NOI
$17,500
After expenses
Monthly Cash Left
$11,287
After debt service
NOI Needed at 1.25x
$93,195
Annual minimum
NOI Headroom
$116,805
Above SBA minimum
Total Interest Paid
$295,560
Over loan life
DSCR = NOI ÷ Annual Debt Service = $210,000 ÷ $74,556 = 2.82x
Loan Breakdown Summary
Purchase Price $500,000
Down Payment (Equity Injection) $50,000
SBA Loan Amount $450,000
Interest Rate 11.50%
Loan Term 10 years (120 months)
Monthly Payment (P+I) $6,213
Annual Debt Service $74,556
Total Amount Paid Over Loan Life $745,560
Total Interest Cost $295,560
DSCR (NOI ÷ Annual Debt Service) 2.82x
Disclaimer: This calculator is for informational and pre-qualification estimation purposes only. Actual lender underwriting may differ based on credit score, industry, business age, collateral, and lender-specific policies. SBA Standard Operating Procedures (SOP 50 10 7) govern actual loan eligibility. Consult a qualified SBA lender or SBDC counselor before making acquisition decisions. Interest rate shown reflects approximate SBA 7(a) prime-based variable rate — actual rate will be set at time of loan approval.

Deal Alert AI — SBA Acquisition Pack  ·  dealalertai.com