Talk →
Commercial finance

EBITDA &
affordability.

Enter your business financials to calculate EBITDA, your maximum supportable loan, and your Debt Service Coverage Ratio — the key metric commercial lenders use to assess your case.

EBITDA calculationDSCR assessmentMax loan estimateLender stress test
Commercial mortgage calculator

Your business,
your borrowing power

Enter your P&L figures below. The calculator works out your EBITDA, then assesses how much a commercial lender is likely to offer based on a standard 1.25x interest coverage ratio at a stressed rate of 7%.

Profit & loss
Annual turnover / revenue
£
Cost of sales / direct costsMaterials, direct labour
£
Operating expensesWages, rent, admin — excl. interest & tax
£
Add-backs: depreciation and amortisation are non-cash costs — lenders add these back to get a true EBITDA picture. Include them below if applicable.
Depreciation & amortisationAdd-back — enter 0 if none
£
Loan details
Proposed loan amount
£
£100k£10m
Lender stress rateTypically 6.5–8%
%
4%12%
Loan term
years
5 yrs30 yrs
EBITDA calculation
EBITDA
£170,000
34.0% margin
Revenue£500,000
Less: cost of sales(£150,000)
Gross profit£350,000
Less: operating expenses(£200,000)
EBIT£150,000
+ Depreciation & amortisation£20,000
EBITDA£170,000
Affordability assessment
DSCR at proposed loan
2.43x
Max loan (1.25x ICR)
£1,942,857
Annual interest (stressed)
£70,000
Monthly repayment (est.)
£7,753
Strong
Your DSCR is comfortably above 1.25x. Most commercial lenders would consider this case at the proposed loan amount — subject to LTV, security type, and full credit assessment.
DSCR = EBITDA ÷ Annual interest at stress rate. Lenders typically require minimum 1.25x. Max loan calculated at exactly 1.25x coverage. These are indicative figures only — actual lender appetite varies by security type, sector, and credit profile.
Your resultMaximum supportable loan: £1,942,857 on EBITDA of £170,000

Keep your copy

We'll send this to your inbox — no spam, no obligation.

Need short-term finance too? Bridging cost calculator →

What lenders look at

Beyond the
numbers

EBITDA and DSCR are starting points. Commercial lenders also assess the quality of the business, the security, and the sector before making a decision.

Key metric
DSCR — 1.25x minimum
Debt Service Coverage Ratio measures how many times your EBITDA covers the interest on the loan. Most lenders require at least 1.25x at a stressed rate of 6.5–8%.
Key metric
LTV — typically 65–70%
Commercial mortgages are usually capped at 65–70% of the property value. The DSCR check and LTV check must both pass — whichever produces the lower loan amount wins.
Lender focus
Security & sector
Lenders assess the quality and liquidity of the security (office, retail, industrial, mixed-use) and the sector risk of the business. Some sectors attract specialist lenders only.
Lender focus
Track record & accounts
Most lenders want two to three years of trading accounts. Start-up or early-stage businesses require specialist lenders with higher rates and stricter terms.

Ready to discuss
your case?

Commercial cases are complex — and no calculator replaces a proper conversation. Speak with Nathan to get an honest assessment of what lenders will actually offer your business.

Speak with NathanCommercial mortgages

Appointed representative · FRN 1046161 · Whole-of-market · Independent advice

Questions worth asking

EBITDA stands for earnings before interest, tax, depreciation, and amortisation. It's a measure of operating profitability that commercial lenders use to assess how much debt a business can afford.
The debt service coverage ratio is net operating income divided by debt repayments. Lenders use it to check that income comfortably covers the loan, and often look for a ratio above around 1.25.
Commercial lending is usually sized on the debt your EBITDA and DSCR can service, rather than a simple income multiple. This tool estimates a maximum supportable loan on that basis.
No. It's an indicative estimate. Actual terms depend on the lender, your sector, and full underwriting of the business.
Related reading

Complex & commercial income

Why Developers Keep Hitting the Same Funding WallWhere commercial borrowing capacity runs out.Complex Income, Clear PathMortgages for the self-employed.
Related service

Raising commercial finance?

Commercial & Development FinanceSpecialist commercial mortgage and development advice.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.