Frequently asked questions
Short answers about how CovenantScope works, what it calculates, and what it deliberately does not do.
Is my data uploaded or stored anywhere?
No. All calculations run entirely in your browser. Nothing you enter is uploaded, transmitted or saved. There is no account, database or server-side processing of your figures.
Does CovenantScope convert currencies?
No. The currency selector is display formatting only. Enter all monetary figures in the same currency; no conversion is performed.
Are the covenant definitions used here correct for my agreement?
Not necessarily. Covenant definitions vary materially between credit agreements. CovenantScope models the assumptions you enter — it does not determine the correct definitions for your agreement. Always refer to your finance documents.
What does "N/M" mean?
"Not meaningful" — shown when a ratio cannot be computed sensibly, for example when EBITDA is zero or negative, or when cash interest is zero. It avoids displaying Infinity, NaN or misleading values.
What is the binding / tightest covenant?
The active covenant that reaches its entered threshold first, measured by the smallest percentage decline in EBITDA. It tells you which constraint breaks first under stress, based on the figures you entered.
Why are some results labelled "indicative" or "illustrative"?
Because definitions vary and some calculations make simplifying assumptions (for example the indicative CFADS builder or interest-coverage debt capacity). These labels signal that the result is a modelling approximation, not a contractual determination.
Does CovenantScope give financial or legal advice?
No. CovenantScope provides calculation and modelling tools only. It does not provide legal, lending, investment, accounting or financial advice, and makes no recommendation about borrowing or compliance.
Can I use this for my real credit agreement?
Yes, as a fast way to run a covenant check — but you must map your agreement's definitions to the inputs yourself. The tool does not interpret your agreement or decide what counts as debt, cash or EBITDA.
Is there an app, login or paid plan?
No. CovenantScope is a free, browser-based utility with no account, login or subscription.
Do you show live interest rates or market data?
No. There are no live rates, market feeds or external financial-data APIs. Any rate you use is one you enter yourself.