Act on the result
Reconcile every debt payment and confirm the lender covenant definition before using the ratio in a financing decision.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Owners stress-testing whether operating cash can cover scheduled debt and lease obligations.
Outputs
Total debt service, base and downside coverage, cash gap to the selected threshold and downside status.
Start here
Use one period for cash and debt payments, then choose a conservative cash-reduction scenario.
Use a different tool when: Do not use this to compare periodic loan repayments and total interest across financing terms; use Business Loan Repayment Planner for that decision. Use this tool to stress-test operating cash coverage of scheduled debt obligations.
Cash & growth
Debt Service Coverage: total debt service
Total debt service, base and downside coverage, cash gap to the selected threshold and downside status.
Amounts use the same currency as your inputs. No currency conversion is performed.
Planning assumptions
Use records and assumptions from one consistent period. Values stay in this browser.
Your numbers stay in this browser
Cash available for debt service for the selected period. Use one consistent currency and time basis.
Interest payments due in the same period. Use one consistent currency and time basis.
Principal repayments due in the same period. Use one consistent currency and time basis.
Other contractual debt-like payments due in the period. Use one consistent currency and time basis.
Stress reduction applied to operating cash available.
User-selected minimum operating-cash coverage threshold.
Decision result
Each output is bound to its own registered engine formula step.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Base coverage ratio
- 1.5×
- Debt Service
- 120,000.00
- Downside Coverage Ratio
- 1.28×
- Base Coverage Gap
- 30,000.00
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario1.50Baseline
Lower Downside cash reduction1.500.00
Higher Downside cash reduction1.500.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Base coverage ratio
Base Coverage Ratio
operating cash available ÷ debt service1.5 ratioResult1.5×
Uses one consistent market-neutral ex-tax basis and planning period. The engine retains full precision; only presentation is rounded.
Debt Service Coverage Planner formulas →Inputs used by these formula steps
- Base Coverage RatioOperating Cash Available
- 180,000
- Base Coverage RatioInterest Due
- 30,000
- Base Coverage RatioPrincipal Due
- 75,000
- Base Coverage RatioLease And Other Debt Due
- 15,000
- Base Coverage RatioDownside Cash Reduction Rate
- 0.15
- Base Coverage RatioMinimum Coverage Ratio
- 1.25
Debt Service
Debt Service
interest due + principal due + lease and other debt due120,000.00Result120,000.00
Uses one consistent market-neutral ex-tax basis and planning period. The engine retains full precision; only presentation is rounded.
Debt Service Coverage Planner formulas →Inputs used by these formula steps
- Debt ServiceOperating Cash Available
- 180,000
- Debt ServiceInterest Due
- 30,000
- Debt ServicePrincipal Due
- 75,000
- Debt ServiceLease And Other Debt Due
- 15,000
- Debt ServiceDownside Cash Reduction Rate
- 0.15
- Debt ServiceMinimum Coverage Ratio
- 1.25
Downside Coverage Ratio
Downside Coverage Ratio
operating cash available × (1 − downside reduction) ÷ debt service1.28 ratioResult1.28×
Uses one consistent market-neutral ex-tax basis and planning period. The engine retains full precision; only presentation is rounded.
Debt Service Coverage Planner formulas →Inputs used by these formula steps
- Downside Coverage RatioOperating Cash Available
- 180,000
- Downside Coverage RatioInterest Due
- 30,000
- Downside Coverage RatioPrincipal Due
- 75,000
- Downside Coverage RatioLease And Other Debt Due
- 15,000
- Downside Coverage RatioDownside Cash Reduction Rate
- 0.15
- Downside Coverage RatioMinimum Coverage Ratio
- 1.25
Base Coverage Gap
Base Coverage Gap
operating cash available − debt service × minimum coverage ratio30,000.00Result30,000.00
Uses one consistent market-neutral ex-tax basis and planning period. The engine retains full precision; only presentation is rounded.
Debt Service Coverage Planner formulas →Inputs used by these formula steps
- Base Coverage GapOperating Cash Available
- 180,000
- Base Coverage GapInterest Due
- 30,000
- Base Coverage GapPrincipal Due
- 75,000
- Base Coverage GapLease And Other Debt Due
- 15,000
- Base Coverage GapDownside Cash Reduction Rate
- 0.15
- Base Coverage GapMinimum Coverage Ratio
- 1.25
Inputs used
- Operating cash available
- 180,000
- Interest due
- 30,000
- Principal due
- 75,000
- Lease and other debt due
- 15,000
- Downside cash reduction
- 0.15
- Minimum coverage ratio
- 1.25
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| downsideCashReductionRate | Stress reduction applied to operating cash available. | decimal fraction of operating cash removed in the downside scenario (1 = 100%) | 0 to 1 | Required | 0.15 |
| interestDue | Interest payments due in the same period. Use one consistent currency and time basis. | currency units/selected debt-service period | 0 to 100000000 | Required | 30000 |
| leaseAndOtherDebtDue | Other contractual debt-like payments due in the period. Use one consistent currency and time basis. | currency units/selected debt-service period | 0 to 100000000 | Required | 15000 |
| minimumCoverageRatio | User-selected minimum operating-cash coverage threshold. | decimal debt-service coverage ratio: operating cash / total debt service | 1 to 20 | Required | 1.25 |
| operatingCashAvailable | Cash available for debt service for the selected period. Use one consistent currency and time basis. | currency units/selected debt-service period | 0 to 100000000 | Required | 180000 |
| principalDue | Principal repayments due in the same period. Use one consistent currency and time basis. | currency units/selected debt-service period | 0 to 100000000 | Required | 75000 |
Debt Service Coverage: total debt service
Coverage is a planning ratio based on the entered definition of operating cash and debt service, not a covenant assessment.
Formula summary
- Primary formula
- operating cash available ÷ debt service
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Increase the downside cash reduction and include lease or other debt-like obligations that may have been omitted.
When this estimate can be misleading
- This model excludes lender fees, tax effects, covenant wording and lender-specific assessments.
- Results depend on complete, consistently classified inputs.
- Demand, timing, quality and strategic fit remain separate decisions.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- Coverage is a planning ratio based on the entered definition of operating cash and debt service, not a covenant assessment.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Business Borrowing: Repayment and Cash Coverage
Review repayment, total interest, a declared cash-based affordability ceiling and downside debt-service coverage without treating a ratio as lender approval.
Read guide
Frequently asked questions
How do I stress-test operating cash coverage of scheduled debt obligations?
Reconcile every debt payment and confirm the lender covenant definition before using the ratio in a financing decision.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.