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Project Finance Calc

CFADS Calculator

Build cash flow available for debt service period by period, from revenue down through every leakage a lender cares about. CFADS is the numerator of DSCR and LLCR, so getting it right is upstream of every other number in a project finance model.

Total CFADS

312.70

Over 8 periods

Lowest period

30.40

Sets the annuity debt ceiling

CFADS / revenue

52.3%

Cash conversion

EBITDA to CFADS

72.5%

Retained after leakages

Revenue, EBITDA and CFADS by period

RevenueEBITDACFADS
0 25 50 75 100Revenue — period 1: 62.00EBITDA — period 1: 43.50CFADS — period 1: 30.401Revenue — period 2: 71.50EBITDA — period 2: 52.30CFADS — period 2: 39.002Revenue — period 3: 74.80EBITDA — period 3: 55.00CFADS — period 3: 41.103Revenue — period 4: 76.20EBITDA — period 4: 55.80CFADS — period 4: 40.104Revenue — period 5: 77.50EBITDA — period 5: 56.50CFADS — period 5: 41.705Revenue — period 6: 78.40EBITDA — period 6: 56.70CFADS — period 6: 41.706Revenue — period 7: 78.90EBITDA — period 7: 56.50CFADS — period 7: 38.607Revenue — period 8: 78.10EBITDA — period 8: 55.00CFADS — period 8: 40.108

CFADS build-up

Scroll for all columns →
Year RevenueOpexEBITDATaxΔ WCMaint capexΔ ReservesCFADSMargin
1 62.00 18.50 43.50 6.20 1.40 3.50 2.00 30.40 49.0%
2 71.50 19.20 52.30 8.90 0.80 3.60 0.00 39.00 54.5%
3 74.80 19.80 55.00 9.80 0.40 3.70 0.00 41.10 54.9%
4 76.20 20.40 55.80 10.20 0.30 5.20 0.00 40.10 52.6%
5 77.50 21.00 56.50 10.60 0.30 3.90 0.00 41.70 53.8%
6 78.40 21.70 56.70 10.80 0.20 4.00 0.00 41.70 53.2%
7 78.90 22.40 56.50 10.90 0.20 6.80 0.00 38.60 48.9%
8 78.10 23.10 55.00 10.50 0.20 4.20 0.00 40.10 51.3%
Total 597.40 166.10 431.30 77.90 3.80 34.90 2.00 312.70

What CFADS is, precisely

CFADS = revenue − operating costs − tax − increase in working capital − maintenance capex − increase in reserve balances

Every line below EBITDA in that stack is there for the same reason: it is cash that has already left the project before any lender can be paid. A model that sizes debt off EBITDA rather than CFADS will systematically oversize it.

CFADS is struck before interest, principal and financing fees. That is what makes it a valid numerator forDSCR andLLCR — the ratio would be circular otherwise.

The sign convention that trips people up

Working capital and reserves are entered as movements, not balances, and an increase is a cash outflow. A DSRA top-up of 2.0 reduces CFADS by 2.0; a release of 2.0 is entered as −2.0 and adds back. The same applies to working capital: a build in receivables is positive here.

Frequently asked questions

What is CFADS?

CFADS — cash flow available for debt service — is revenue less operating costs, less tax, less any increase in working capital, less maintenance capex, less any increase in required reserve balances. It is the cash a project can actually use to pay lenders, and it is the input to every cover ratio in project finance.

How is CFADS different from EBITDA?

EBITDA stops at revenue less operating costs. CFADS keeps going and deducts tax, working capital movements, maintenance capex and reserve top-ups, because those are real cash leakages that lenders cannot be repaid out of. CFADS is therefore always lower than EBITDA when those items are positive.

Should the DSRA be deducted from CFADS?

The movement in the reserve should be, not the balance. If the DSRA is topped up by 2.0 in a period, that 2.0 is cash unavailable for debt service and belongs in the reserves line. A release from the reserve is a negative movement and adds back to CFADS.

Does CFADS come before or after interest?

Before. CFADS is struck before any financing cash flow — interest, principal and fees all sit below it. That is what makes it a valid numerator for DSCR, which divides CFADS by debt service.