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1. Review your actual-to-budget financial performance.

Continue to review and update your monthly expenses and payments and compare that to your monthly income.

For a healthy financial performance, we recommend a Debt Service Coverage Ratio of at least 1.25%.

Use our calculator to measure your cash flow against any monthly business debt payments.

Debt Service Coverage Ratio Calculator

also known as "cash flow available for debt service" (CFADS)
Sum of all loan payments (principal & interest) for the matching time period.

Your calculated ratio is .

The Debt Service Coverage Ratio (DSCR) is a credit metric used to understand how easily a company’s operating cash flow can cover its annual interest and principal obligations.

This ratio is really important, as stated multiple times above, to sense what is the level of financial flexibility the business has, particularly in a growth situation. If the ratio is high, it means that there is a higher ability with the business to invest and grow in the future. Similarly, if DSCR is low (less than 1 or slightly above 1), then businesses need to improve this ratio; otherwise, they will face difficulty to procure a loan from the lenders.

This calculator is for illustrative purposes only and is not a guarantee of credit. This service shall not infer that FAIRWINDS assumes any fiduciary duties. In addition, such service should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Use of service is provided without warranty of any kind, either express, implied or statutory, including its accuracy.

2. Focus on products and services that drive revenue and profitability.

Pricing your products and services appropriately is a balancing act.

Punch in the numbers below to help you hone in on the optimal price point, so you can bring the most value and revenue to your business.


This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the provider, CalcXML, assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

3. Assess your team, including management, key employees, and outside partners.

Just as important as reviewing your budget is evaluating your business’s support team, including employees and vendors.

Part of your annual assessment should include these questions:

  • Do I have a CPA, attorney, and insurance partner who can help me take my business to the next level?
  • In the event of a supply chain issue, do I have multiple vendors available to support my business needs?
  • Is my vendor providing me with the best pricing?
  • Are there other vendors that provide the same or greater services for a comparable price?
  • As my business grows, is my vendor able to grow with us?
  • Are they offering all of the services and tools needed to support my business?
  • Do my employees have the necessary skills and training as my business grows?
  • Do I need to outsource current internal jobs/services to another vendor?

Asking questions like these can help you stay on target to grow your business and your bottom line successfully.