capital construction and servicing workspaces · Advanced
Senior and subordinate debt cash-flow model
Calculate combined payment obligations and coverage by priority. Includes multi-tranche debt-service and balance schedule.
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
Senior debt amortizes monthly. Subordinate cash interest accrues at the cash-pay rate on opening balance; the difference to total accrual is capitalized monthly. Report debt cash service and growing subordinate balance separately.
Worked example
The default $3 million senior loan amortizes over 30 years at 6.5%. The $500,000 subordinate loan accrues 12%, pays 8% in cash and capitalizes 4% monthly. Over 12 months, subordinate PIK adds $20,370.77 to principal and subordinate cash interest totals $40,741.54. After both debt layers, $400,000 annual property cash flow leaves $131,713.97 for equity before any unmodeled uses.
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.
- No intercreditor payment blocks, preferred-equity waterfall, tax or default interest. Cash-pay rate cannot exceed total accrual rate.
Method references
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