Fixed Charge Coverage Ratio Calculator
Calculate your ability to cover all fixed obligations
FCCR expands on DSCR by adding lease payments and other fixed obligations to the denominator. If your business has significant operating leases or equipment rentals, lenders will use FCCR rather than DSCR. This calculator includes the same non-recurring kickout and proposed debt fields so you see exactly what the underwriter sees.
- ✓FCCR with annual lease and fixed charge obligations
- ✓Non-recurring kickouts from EBITDA
- ✓Additional proposed debt service modeling
- ✓SBA and conventional lender threshold comparison
e.g. G/L on asset sale, insurance proceeds, PPP forgiveness
Fixed Charges
New loan payments being underwritten
Most lenders require FCCR ≥ 1.20x. Strong borrowers show 1.40x+.
Estimates only. Lender definitions of EBITDA and fixed charges vary.
Frequently Asked Questions
What is the difference between DSCR and FCCR?
DSCR measures net operating income against debt payments only. FCCR adds lease payments and other fixed obligations to the denominator, giving a more complete picture of coverage. SBA lenders typically look at FCCR for businesses with significant lease obligations.
What is a passing FCCR?
Most lenders require FCCR of 1.20x minimum, with 1.25x or higher preferred. SBA guidelines typically require 1.20x or better on a global cash flow basis.
What counts as a fixed charge?
Debt service (P&I on all loans), capital lease payments, operating lease/rent obligations, and sometimes insurance premiums and property taxes depending on the lender's methodology.