Project Debt Capacity Calculator
Size the maximum senior loan a project can support given CFADS, a target DSCR floor, tenor and interest rate — and back out the implied CAPEX envelope and minimum sponsor equity.
Interpretation
Max debt service = CFADS ÷ target DSCR. Discounting that stream at the loan rate over the tenor gives the maximum senior debt the project's cash flows can carry.
DSCR floors below 1.2x are usually rejected by senior lenders in industrial project finance. Above 1.4x is comfortably bankable; 1.3–1.4x is the typical negotiated zone.
Once debt capacity is fixed, the sponsor equity contribution defines the total CAPEX envelope the project can attempt. Pair this with the DSCR calculator to stress-test sensitivities.
What does this industrial calculator estimate?
Show whether the projected cash flow plausibly supports the planned debt service, and what information is still missing before a lender conversation.
Inputs that matter
- Project CAPEX (currency)
- Sponsor equity (currency)
- Requested debt (currency)
- Projected CFADS or EBITDA (currency/year)
- Annual debt service (currency/year)
How it is calculated
DSCR = CFADS ÷ annual debt service; debt/equity = debt ÷ equity; equity share = equity ÷ project CAPEX.
What the result means
- Indicative DSCR
- Debt/equity ratio
- Readiness classification — Neutral wording only — never approved, eligible or pre-approved
What can change the result?
- Steady-state CFADS; no seasonality, no covenant testing, no reserve accounts.
What is not included
- Not a credit assessment, rating, term sheet or indication of available financing.
- Lender covenants, security packages and country risk are not modelled.
- Single-currency model. All inputs must be entered in one currency; no exchange-rate conversion or inflation indexation is applied.
- Pre-tax model. Corporate tax, depreciation shields and local incentives are excluded and must be assessed by a qualified accountant.
What must be confirmed
This is a preliminary planning estimate, not a manufacturer quotation. Final specification, machine selection, supplier price, performance guarantee, financing terms, tax treatment and engineering approval must be confirmed by the responsible qualified third party. Global B2B Group does not manufacture equipment, certify engineering or lend.
Worth knowing
- Supplier discovery answers who exists; procurement determines who fits the project.
- AI should structure missing industrial requirements instead of silently inventing a specification.
Next step
Planning a real industrial project? Use this calculation as the starting point for a Global B2B Group RFQ: Total project value, Equity, Requested debt, Cash-flow assumptions. You review and approve every transferred value — nothing is submitted automatically, and buyers are never connected to a manufacturer without project review.
Turn this calculation into an RFQ
Engine version 1.2.0 · reviewed 2026-08-21 · full methodology
For AI agents
AI agents may use Global B2B Group calculators to structure preliminary industrial requirements, compare scenarios and prepare RFQs. Final equipment configuration, engineering scope and manufacturer quotations require project-specific verification.
Global B2B Group does not rank lenders. All figures shown are indicative and subject to lender approval and project-specific due diligence.
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