capital construction and servicing workspaces · Advanced
Covenant headroom monitor
Measure current performance against explicitly defined thresholds. Includes covenant headroom and sensitivity outputs.
Your assumptions
Illustrative starting values. Replace them with your own evidence. Inputs stay in this browser.
Your scenario, explained
Results
Calculation assumptions
Version 1.0.0 · Educational scenario, subject to the stated assumptions.
How this calculation works
Method and assumptions
Compare each entered numerator and denominator with the matching threshold. Express headroom in ratio/percentage-point terms and dollar terms; positive headroom meets the modeled test.
Worked example
At the default $300,000 cash flow and $240,000 annual debt service, DSCR is exactly the entered 1.25x minimum. The $3 million balance is exactly 75% of $4 million value. Debt yield is 10%, above the entered 9%, and $200,000 liquidity exceeds the $150,000 minimum. All four entered tests are met, but the DSCR test has zero income cushion: even a small decline would breach that modeled threshold.
Before using the result
Know the boundaries
- Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
- Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.
- Definitions, measurement periods, permitted adjustments and cure provisions must match the executed covenant. An undefined denominator is not a passing test.