Rytvae Consulting · Think Right · Invest Right
Cash Accrual Eligibility Calculator
Result
Chart
Show formula & working
Cash available = PAT + Depreciation + Interest on term debt
Room for new debt service = Cash available ÷ Target DSCR − Existing term-debt service
Maximum loan = Room ÷ 12 × (1 − (1 + r)−n) ÷ r
Details
How this works
Lenders size a term loan by asking how much of the business's cash accruals can go to repayments while leaving a cushion. That cushion is the target DSCR.
Dividing cash available by the target DSCR gives the most that can go to all term-debt service; existing repayments come off first, and the rest supports the new loan.
Frequently asked questions
Which year's figures should I use?
Lenders look at the last audited year and the projections. For a projection-based check year by year, use the DSCR calculator.
Does the new loan's interest change the answer?
Yes, slightly — it lowers future profit. This quick method uses current accruals; detailed appraisal uses projections that include the new interest.
Planning business borrowing?
Structure, tenure and the right lender matter as much as the rate. Talk to Rytvae before you apply.