Debt Capacity Calculator
Size the debt a target can support from EBITDA and a leverage multiple, and check the annual interest burden and rough coverage against cash flow.
Assumptions
Results
Total debt
$100M
Annual interest
$11M
Cash for debt service
$16M
Interest coverage
1.45x
A coverage ratio below ~1.5–2.0x is a warning sign. Simplified — ignores amortization and revolver draws. Illustration only.