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Project Finance Calc

Debt Sculpting Calculator

Enter cash flow available for debt service (CFADS) by period and a target DSCR. This tool sizes the maximum supportable debt, builds the full sculpted repayment schedule with DSCR and LLCR by period, and shows exactly what you give up by repaying on a level annuity instead. Everything runs in your browser — no signup, no upload, no limits.

Maximum supportable debt

264.18

Sculpted over 12 years at 6.750% per period

Uplift vs annuity

+38.5%

73.38 more debt

Total interest

134.26

50.8% of principal

Weighted avg life

7.53 yrs

Average time principal is outstanding

Minimum DSCR

1.350

Flat by construction

Balloon / residual

0.00

Fully amortising

Debt service vs CFADS

CFADSSculpted DSAnnuity DS
0 13 25 38 50 Period 1: CFADS 32.00, debt service 23.70 1 Period 2: CFADS 41.50, debt service 30.74 2 Period 3: CFADS 44.80, debt service 33.19 3 Period 4: CFADS 46.20, debt service 34.22 4 Period 5: CFADS 47.50, debt service 35.19 5 Period 6: CFADS 48.40, debt service 35.85 6 Period 7: CFADS 48.90, debt service 36.22 7 Period 8: CFADS 48.10, debt service 35.63 8 Period 9: CFADS 47.20, debt service 34.96 9 Period 10: CFADS 46.00, debt service 34.07 10 Period 11: CFADS 44.50, debt service 32.96 11 Period 12: CFADS 42.80, debt service 31.70 12

DSCR by period — sculpted vs annuity

SculptedAnnuityTarget
0.00 0.50 1.00 1.50 2.00 Period 1: DSCR 0.975 — below target 1.35Period 2: DSCR 1.265 — below target 1.35Period 12: DSCR 1.304 — below target 1.35 123456789101112

Sculpted vs annuity

Structure Max debt Min DSCR Total interest WAL (yrs) Breaches
SculptedDSCR held on target 264.18 1.350 134.26 7.53 None
AnnuityLevel total debt service 190.81 1.350 93.64 7.27 None
LevelEqual principal each period 157.15 1.350 68.95 6.50 None

All three are sized so that DSCR never falls below the covenant, which is the only fair comparison. Sculpting supports 73.38 more than an annuity (+38.5%) and 107.03 more than equal-principal repayment (+68.1%), on identical cash flows. Both alternatives are capped by year 1, the weakest period.

Force the annuity to carry the sculpted 264.18 instead and its DSCR swings from 0.975 to 1.490, breaching in 3 of 12 periods. Equal principal fares worse still, bottoming at 0.803 because its debt service is heaviest in year one, exactly when CFADS is lowest.

Repayment schedule

Scroll for all columns →
Year CFADS Debt service Interest Principal Opening Closing DSCR LLCR Annuity DS Annuity DSCR
1 32.00 23.70 17.83 5.87 264.18 258.31 1.350 1.350 32.82 0.975 ▾
2 41.50 30.74 17.44 13.30 258.31 245.00 1.350 1.350 32.82 1.265 ▾
3 44.80 33.19 16.54 16.65 245.00 228.36 1.350 1.350 32.82 1.365
4 46.20 34.22 15.41 18.81 228.36 209.55 1.350 1.350 32.82 1.408
5 47.50 35.19 14.14 21.04 209.55 188.51 1.350 1.350 32.82 1.447
6 48.40 35.85 12.72 23.13 188.51 165.38 1.350 1.350 32.82 1.475
7 48.90 36.22 11.16 25.06 165.38 140.32 1.350 1.350 32.82 1.490
8 48.10 35.63 9.47 26.16 140.32 114.16 1.350 1.350 32.82 1.466
9 47.20 34.96 7.71 27.26 114.16 86.91 1.350 1.350 32.82 1.438
10 46.00 34.07 5.87 28.21 86.91 58.70 1.350 1.350 32.82 1.402
11 44.50 32.96 3.96 29.00 58.70 29.70 1.350 1.350 32.82 1.356
12 42.80 31.70 2.00 29.70 29.70 0.00 1.350 1.350 32.82 1.304 ▾
Total 537.90 398.44 134.26 264.18 393.83

How debt sculpting works

In project finance, lenders size debt against the cash the project throws off, not against the value of its assets. The measure they use is CFADS — cash flow available for debt service — and the covenant they impose is a minimum DSCR, typically between 1.20x and 1.50x depending on how contracted the revenue is.

Sculpting inverts that covenant. Instead of choosing a repayment profile and checking whether DSCR holds, you fix DSCR at its target and solve for the repayment profile that delivers it:

debt service[t] = CFADS[t] / target DSCR

Once every period's debt service is known, the maximum debt the project can carry is simply the present value of that stream at the loan's periodic interest rate:

debt size = Σ ( CFADS[t] / target DSCR ) / (1 + r)^t

Because the debt is sized as the present value of its own repayments, the balance amortises to exactly zero at maturity — no balloon, no residual. The calculator above shows this as the "Balloon / residual" figure, which should always read 0.00 for a well-formed input.

Splitting debt service into interest and principal

Each period's debt service is then decomposed the usual way:

interest[t] = r × opening balance[t] principal[t] = debt service[t] − interest[t] closing balance[t] = opening balance[t] − principal[t]

Principal is the residual, which is what gives sculpted debt its characteristic back-loaded profile: early periods are mostly interest, and principal repayment accelerates as the balance falls and CFADS rises.

The DSCR and LLCR check

Under flat-DSCR sculpting, LLCR equals the DSCR target in every single period. That is not a coincidence — it falls out of the algebra. The opening balance at any period is the present value of remaining debt service, which is the present value of remaining CFADS divided by the target DSCR. Dividing PV of CFADS by that balance returns the target exactly. If your own model produces an LLCR that drifts away from DSCR on a flat sculpt, the model has a bug.

Why not just use an annuity?

A level annuity — the mortgage-style repayment most people default to — pays the same amount every period. That is fine when income is flat, and actively expensive when it is not. A project's CFADS is almost never flat: there is a ramp-up, a plateau, and usually a decline as the asset degrades or the offtake contract rolls off.

With a level payment, the DSCR covenant is only ever as strong as the weakest period. The payment cannot exceed the lowest CFADS divided by the target DSCR without breaching, so every other period ends up servicing far less debt than it could afford. That unused headroom is real money — the comparison panel above quantifies it for whatever cash flows you enter.

Read the full breakdown on thesculpted vs annuity comparison page, or see thefull methodology for the derivations.

Frequently asked questions

What is debt sculpting?

Debt sculpting sets each period's debt service equal to that period's CFADS divided by a target DSCR, so the repayment profile follows the shape of the project's cash flows. The result is a constant DSCR across the whole tenor instead of a constant payment.

How is the maximum debt size calculated?

Debt service in each period is CFADS divided by the target DSCR. The maximum supportable debt is the present value of that debt service stream, discounted at the loan's periodic interest rate. Because the debt is sized as the PV of its own repayments, it amortises to exactly zero at maturity.

Why does sculpting support more debt than an annuity?

A level annuity payment is capped by the weakest period: the payment can never exceed that period's CFADS divided by the target DSCR, or the covenant breaches. Every other period then carries far less debt service than it could. Sculpting lets each period contribute its own full capacity, which raises total debt size on identical cash flows.

What is the difference between DSCR and LLCR?

DSCR is a single-period measure — CFADS divided by debt service for that period. LLCR is a whole-of-life measure — the present value of CFADS over the remaining loan life divided by the outstanding debt balance. Under flat-DSCR sculpting the two are equal, which is a useful check that a model is built correctly.

Is this calculator free?

Yes. There is no signup, no paywall and no usage limit. Every calculation runs locally in your browser — your cash flow figures are never sent to a server.