Commercial Serviceability Calculator - ICR & DSCR
Commercial lenders do not assess a property loan on your personal income. They test whether the asset covers its own debt, using the Interest Cover Ratio and the Debt Service Cover Ratio. This calculator produces both and shows the maximum loan each supports.
Frequently asked questions
What is the difference between ICR and DSCR?
ICR measures income against interest only. DSCR measures income against the full principal and interest commitment, so it is the stricter test on an amortising loan and is usually the binding constraint.
Why assess above the actual rate?
Commercial lenders add a buffer, typically 1.5 to 2.5 percentage points, so the asset still covers its debt if rates rise during the loan term.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.