Calculation Tools

How much can the firm borrow?

Calculate debt capacity.

Try the numbers

The fields start with the article’s example. Change a value to see CFADS, DSCR and safe debt capacity update together.

1. CFADS

CFADS 170,0 mn TL

2. DSCR

DSCR 1,70 · Safer

3. Safe debt capacity
  • Maximum annual debt service 113,3 mn TL
  • Max debt if only interest is paid 283,3 mn TL
  • Max debt with equal principal 188,9 mn TL
4. Extra tests
  • Net debt / EBITDA 2,50x · Monitor closely
  • EBITDA / interest 3,00x

Equal-principal capacity uses the conservative first-year load: interest + 1/tenor. Amounts are million TL, as in the article.

CFO note

Treat the output as a decision aid, not a credit approval. Compare it with covenants, liquidity and the firm’s actual cash generation.

Stress test

Re-run the model with a weaker operating path: lower receipts, higher rates, or a sharper FX move.

Academic note

The formulas follow standard corporate-finance identities used in the related article. They do not replace a full credit file.

Read the related article →