Free Tools

Two calculators every practice owner should run before talking to a bank.

Estimate your bankable loan capacity and your debt service coverage in under 60 seconds. These are the first two numbers your lender will run, before they look at anything else.

Calculator 01

Equity Strip

How much additional credit can you pull out of your practice today, beyond what you already owe?

USD
$500K Fair market value — 65–85% of revenue for dental, 75–110% for vet $10M
%
50% Banks lend 75–85% of FMV on a healthy practice 90%
USD
$0 Term loans + operating line drawn (excl. lease & shareholder loans) $6M
Available equity strip
$1,400,000
Strong headroom
Material equity strip available. This is room for an acquisition, real-estate purchase, partner buy-in, or owner liquidity event.
Bankable @ 80% — $2.0M
Existing debt — $600K
Max bankable loan$2,000,000
Less existing debt−$600,000
Available headroom$1,400,000
Calculator 02

Debt Service Coverage

Will the cash flow cover the loan payments with the cushion your covenant requires?

USD
$100K Owner-normalized EBITDA after a market salary $2.5M
USD
$250K Total term debt being sized $10M
%
3.00% Today's prime + 1% on a healthy file ≈ 6.95% 12.00%
yrs
5 yrs Most practice term debt amortizes 10–15 years 25 yrs
Debt service coverage ratio
1.83×
Strong — covenant headroom
Comfortable above a 1.20× covenant. File presents well even before normalization adjustments are layered in.
1.20× 1.35× 1.83×
0.50×1.50×2.50×
Your DSC Stressed +200 bps
Cash flow available$450,000
Monthly payment$20,514
Annual debt service$246,164
DSC ratio1.83×
DSC @ +200 bps stress1.61×
Reading the Results

What the numbers mean to a bank.

Equity Strip

Practice debt at 75–85% of fair market value is normal for a healthy file. A large equity strip means flexibility, whether for an acquisition, real estate, or pulling capital out personally. A small or negative one means a refinance won't move the needle without changes to the underlying valuation.

DSC

Most lender covenants require DSC ≥ 1.20× on a stress-tested basis. Below 1.20× the file is hard to defend. Between 1.20× and 1.35× the file works but committee will scrutinize. Above 1.35× and you're in covenant-comfort territory.

Numbers look tight? That's when packaging matters most.

A directional DSC of 1.18× and a defensible DSC of 1.31× are often the same practice with two different files attached. The Bankability Report is what closes that gap.

See Engagement Options  →