Classic Debt Service Coverage Ratio (DSCR) punishes growth SaaS: customer acquisition cost is expensed, so operating income looks negative and the ratio comes back below 1x. The EBITCAC framework reclassifies the growth portion of CAC as a capital investment. Enter your numbers to see how your coverage changes and roughly how much venture debt your business could service.
EBITCAC FRAMEWORK
Can your SaaS service venture debt?
−$1.2M
$3.0M
$1.5M
Classic DSCR
−0.80x
EBITCAC-adjusted DSCR
1.20x
Max annual debt service you can cover at 1.25x (EBITCAC)
≈ $1.4M / yr
Under EBITCAC you cover the debt (1.20x), but sit just under the ~1.25x comfort line. Trim debt service to about $1.4M/yr to clear it, or lenders may still underwrite with forward income and runway.
Illustrative, not an offer. Cash out the door is unchanged; EBITCAC reclassifies how growth CAC is read.Check your compatibility →
This is an illustrative model, not a financing offer. For the full method, read what DSCR SaaS venture-debt lenders actually require and the EBITCAC framework.