ATLAS / DECISION TOOLS
Business debt-service headroom calculator.
Compare available operating cash with current and proposed debt payments, then stress-test the cash available without predicting lender approval.
Can operating cash support the proposed repayments?
Compare the cash available after operating outgoings with current and proposed debt payments. Reduce the cash assumption to test a weaker period. This is a planning measure, not a lender-specific debt-service ratio or approval threshold; check how each proposal defines income, expenses and required cover.
Work through business debt-service planningHow this model works.
Enter cash available after operating costs, tax and owner drawings but before debt payments. This user-defined cash measure may differ from a lender’s DSCR calculation.
Coverage equals available annual cash divided by total annual debt payments. A zero debt denominator is shown as not applicable.
The stress case reduces positive cash available by the entered percentage. For a negative starting cash flow it increases the deficit by that percentage. No universal approval threshold is applied.
Questions about this tool
Does a ratio above one guarantee approval?
No. It only means the entered cash measure exceeds entered debt payments in this model. Lenders also assess other information and may use different measures.
What belongs in debt payments?
Include principal, interest and required fees due during the same period, plus relevant balloon payments.
Model methodology describes Atlas’s illustrative calculation, not any provider’s underwriting rules. Check the actual proposal and obtain advice appropriate to your circumstances.