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Everything you already owe, plus this
Underwriters add up every position before they decide. This does the same sum, in the same order, so you see what they will see.
Total debt service, including what you already owe
Stacking a second advance on top of a first is the most common way a funded business ends up worse off than before. Add everything.
- Total monthly debt service
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- Share of revenue
- Share of gross profit
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- Left after debt and cost of goods
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Share of gross profit is the harder test and the one most owners skip. Revenue pays for stock and labour first; the remittance comes out of what is left.
Adding a position is never a decision about the new deal on its own. It is a decision about the stack: what leaves your account every month once everything you already signed is counted.
List what you owe, add the offer on the table, and the calculator gives you the monthly total, what share of revenue it represents, and a coverage figure computed the way a credit file would compute it.
Coverage here divides cash available for debt service by total debt service. Different lenders define the numerator differently — some add back owner compensation, some do not — so treat the number as a sanity check rather than as anyone's underwriting decision.
The terms in this calculator
Questions about the total debt service calculator
What is a debt service coverage ratio?
Cash available to service debt, divided by the debt service due in the same period. Above 1.0 means the business generates more than its payments; below 1.0 means it does not, and something else is funding the gap.
What coverage ratio do lenders want?
It varies by lender and by product, and most do not publish a threshold. Where a lender in this directory publishes one, it is on that lender's page. Rather than aim at a number someone told you, look at what your coverage does in your worst month.
Does a merchant cash advance count as debt for this?
The contract says it is a purchase, not a loan. Your cash flow does not care about that distinction — the money leaves either way, and every underwriter looking at your bank statements will count it. Include it.
What is stacking?
Taking a second position while a first is outstanding. Most agreements prohibit it explicitly, and underwriters detect it from your bank statements in minutes. The arithmetic of two simultaneous daily debits is what makes it dangerous, before the contractual consequences are even reached.
Should I include my own draws?
For your own planning, yes — money you actually take out is not available to service debt. A lender doing a global cash flow analysis will look at your personal obligations too, especially on a guaranteed facility.
How do I count a daily debit as a monthly figure?
Multiply by about 21.67 banking days, not by 30. Using 30 overstates your monthly debt service and will make an affordable deal look impossible.
What if I have a line of credit I have not drawn?
Count the payment on what you have actually drawn. Be aware that an underwriter may count the full limit as potential exposure, which is one reason a large unused line can make the next facility harder to get.
Does paying one position off first improve this the most?
Not necessarily the largest one. Clearing whichever position has the highest payment relative to its remaining balance frees the most monthly cash per dollar spent. Model both before deciding.
What if the answer is that I cannot afford it?
Then the useful next question is whether the shortfall is a timing problem or a margin problem, because borrowing fixes the first and deepens the second.