Project finance debt sizing calculator
Size debt to a target DSCR, test it under a yield shortfall and see the first three years of the cash waterfall.
A teaching aid, not financial advice. Annual periods, nominal USD, pre-tax, no incentives, no fees, no interest on the reserve. The defaults are the invented example on the page: every input is our assumption.
| Result | Value |
|---|---|
| Capex (USD) | - |
| Debt sized (USD) | - |
| Reserve funded at close (USD) | - |
| Debt as share of capex plus reserve | - |
| Equity at close (USD) | - |
| Lowest and average DSCR, base case | - |
| Lowest DSCR with the stress | - |
| Years below the lock-up / below 1.00 (stress) | - |
| Project IRR, before debt | - |
| Equity IRR (base case, after debt and reserve) | - |
First three years of the cash waterfall (base case, USD)
| Line | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue less O&M (CFADS) | - | - | - |
| Interest | - | - | - |
| Principal | - | - | - |
| Reserve top-up (negative is a release) | - | - | - |
| Cash to equity | - | - | - |
| DSCR | - | - | - |
Method: debt service each year is CFADS divided by the target DSCR (sculpted), or one level payment sized so the lowest DSCR meets the target. Debt is the present value of debt service at the interest rate. The reserve holds the stated months of next year's debt service and is released in the last loan year. The stress cuts revenue in every year but leaves the debt service as sized. Numbers accept 1,100,000 or 0,065 style input. Values such as 1.000 are refused because they could mean 1 or 1,000.