Debt Capacity Calculator
Estimate how much additional debt could be incurred before reaching leverage and interest-coverage thresholds. Illustrative only — ignores fees, amortisation and other financing constraints.
Display formatting only. No currency conversion. Enter all figures in the same currency.
Section A — Financial position
Enter your figures. All fields are optional except where a ratio needs them.
Used for DSCR / indicative CFADS only.
Some covenant definitions prevent net debt falling below zero. Use only if it reflects the definition you are modelling.
Covenant EBITDA
Use Reported EBITDA as-is, or build an adjusted / covenant EBITDA bridge.
Covenant thresholds
Enable only the tests you are modelling. Thresholds are your assumptions — not market standards.
Debt capacity
Indicative additional capacity under each active constraint.
Enter your financial figures and enable at least one leverage or coverage threshold to see debt capacity.
Debt capacity depends on the covenant EBITDA you enter and the thresholds you enable. Where a capacity is negative, your entered debt already exceeds the modelled threshold — shown as an excess, not negative capacity.
What is debt capacity?
Debt capacity is an estimate of how much additional borrowing a business could support before reaching a specified financial constraint. In covenant analysis, that constraint may be a maximum leverage ratio, such as net debt to EBITDA, or a minimum coverage ratio, such as interest coverage.
The available capacity therefore depends on the financial position of the business and the thresholds being modelled. Higher EBITDA or lower existing debt may increase capacity, while additional borrowing can increase leverage and interest expense.
What can constrain debt capacity?
Different covenant tests can produce different levels of borrowing capacity. A leverage threshold may limit the amount of debt that can be added relative to EBITDA, while an interest coverage requirement can restrict borrowing when the resulting interest expense reduces coverage towards its minimum threshold.
The most restrictive active test effectively becomes the binding constraint in the scenario being modelled. CovenantScope compares the entered assumptions mathematically; actual borrowing capacity can also be affected by lender requirements, facility terms, cash flow, amortisation and other financing considerations.