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How much cash-flow decline can the debt service withstand?
Measure coverage using your chosen cash-available definition and a lender-specified minimum.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual cash available for debt service
- $900,000
- Annual scheduled principal
- $350,000
- Annual cash interest
- $200,000
- Required coverage ratio
- 1.25 ×
Cash-flow headroom above chosen coverage minimum
Example result only, not a forecast or promise.
- Debt-service coverage ratio
- 1.6×
- Annual debt service
- $550,000
- Cash-flow decline tolerated
- 23.6%
What to do with this result
Use the exact lender definition and permitted adjustments; this generic model is not a covenant-compliance certificate.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Coverage = cash available / (scheduled principal + cash interest). Cash-flow headroom = cash available − minimum coverage × debt service.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Planning scenarios are not lending, investment, tax or legal advice. Rates, prices, probabilities and transaction terms are supplied assumptions.