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 calculation DSCR assessment Max loan estimate Lender 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 costs Materials, direct labour
£
Operating expenses Wages, 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 & amortisation Add-back — enter 0 if none
£
Loan details
Proposed loan amount
£
£100k£5m
Lender stress rate Typically 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, 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.
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 Nathan Commercial mortgages

FCA regulated · Whole-of-market · Independent advice