MSME Knowledge Hub
Financial Analysis · MSME Term Loans

DSCR Calculation for MSME Business Loans: Formula, Worked Examples and Banker's Perspective

Understand how cash generation is compared with loan repayment obligations, with a practical five-year illustration.

Published 14 October 2026 · Educational guide · All amounts in ₹ lakh unless stated

Break-Even Sales Calculator

Estimate the minimum annual sales needed to cover fixed operating costs. Enter all money amounts in the same unit, such as ₹ lakh.

Enter your figures and select Calculate.

Formula and interpretation

Contribution margin ratio = (Sales − Variable Costs) ÷ Sales. Break-even sales = Fixed Costs ÷ Contribution Margin Ratio. Margin of safety = Expected Sales − Break-Even Sales.

This calculator estimates operating break-even, not debt-service break-even. It excludes financing cash flows unless included in your fixed-cost assumptions.

See the break-even analysis guide and our DSCR calculator.