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What happens to coverage if borrowing rates rise?
Apply a rate shock only to the unhedged floating balance, then recalculate annual cash coverage.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Total debt balance
- $5,000,000
- Unhedged floating share
- 60 %
- Rate increase in percentage points
- 2 %
- Current annual cash interest
- $400,000
- Annual scheduled principal
- $500,000
- Annual cash available for debt service
- $1,400,000
Additional annual interest under shock
Example result only, not a forecast or promise.
- Stressed annual interest
- $460,000
- Stressed debt-service coverage
- 1.5×
- Cash remaining after stressed debt service
- $440,000
What to do with this result
Check rate floors, caps, reset dates and amortization; a full-year instantaneous shock is a stress assumption, not a forecast.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Additional annual interest = debt × unhedged floating share × rate increase. New coverage = cash available / (principal + current interest + additional interest).
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.