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Project Finance Calc

Project Finance DSCR Calculator

Debt service cover ratio for every period of a debt schedule, not a single-year snapshot. Enter CFADS with scheduled principal and interest, set the covenant and lock-up levels, and see exactly which periods breach and by how much.

Minimum DSCR

1.294

Period 7

Average DSCR

1.350

Mean of periods

Aggregate DSCR

1.347

Total CFADS / total debt service

Covenant breaches

1

Periods 7

Check these inputs

  • DSCR is below the 1.30x covenant in period 7. A breach traps distributions and, if deep enough, is an event of default.

DSCR by period

DSCRCovenantLock-up
0.00 0.50 1.00 1.50 2.00 Period 7: 1.294 — below 1.3012345678910

Cover ratio schedule

Scroll for all columns →
Year CFADSPrincipalInterestDebt serviceDSCRSurplusStatus
1 32.00 8.40 15.30 23.70 1.350 8.30 Lock-up
2 41.50 14.60 14.70 29.30 1.416 12.20 Lock-up
3 44.80 18.50 13.70 32.20 1.391 12.60 Lock-up
4 46.20 21.60 12.40 34.00 1.359 12.20 Lock-up
5 47.50 24.60 10.90 35.50 1.338 12.00 Lock-up
6 48.40 27.50 9.20 36.70 1.319 11.70 Lock-up
7 48.90 30.40 7.40 37.80 1.294 11.10 Breach
8 48.10 31.50 5.30 36.80 1.307 11.30 Lock-up
9 47.20 32.10 3.20 35.30 1.337 11.90 Lock-up
10 46.00 32.00 1.10 33.10 1.390 12.90 Lock-up
Total 450.60 334.40 1.347 116.20

The calculation

debt service[t] = principal[t] + interest[t] DSCR[t] = CFADS[t] / debt service[t]

The covenant is tested in every period, which is why the minimum matters far more than the average. A structure averaging 1.60x that dips to 1.05x in year one has failed; a structure flat at 1.30x throughout has not.

Why this is not a rental-property DSCR calculator

Most DSCR calculators on the web size a single-family rental loan: one year's rent over one year's mortgage payment. Project finance DSCR is a schedule — each period has its own principal, its own interest as the balance amortises, and its own CFADS. The ratio moves every period, and the shape of that movement is the whole question.

Aggregate vs average DSCR

Both appear above and they are not the same. Average DSCR is the mean of the per-period ratios. Aggregate DSCR is total CFADS over total debt service across the whole tenor. Aggregate is the more honest summary because it weights each period by size; average over-weights small periods. Neither replaces the minimum.

Getting to a flat DSCR

If the profile here swings around, that is whatdebt sculpting fixes — it solves for the repayment schedule that holds DSCR exactly on the covenant in every period, which also maximises the debt the same cash flows can support.

Frequently asked questions

How is DSCR calculated in project finance?

DSCR is CFADS divided by total debt service in the same period, where debt service is scheduled principal plus interest. Unlike a rental-property DSCR, which is usually a single annual snapshot, project finance DSCR is calculated for every period of the debt schedule and the minimum across all periods is what matters.

What is a good DSCR for a project?

It depends entirely on how contracted the revenue is. Fully contracted availability-based assets typically run 1.10x to 1.20x; contracted renewables 1.30x to 1.45x; anything with merchant price or volume exposure 1.50x and above. A higher covenant is not better in itself — it means the lender is pricing more risk into the structure.

What is the difference between the lock-up level and the default level?

Facility agreements usually set two thresholds. The lock-up level traps distributions: the project keeps operating but cash cannot flow to sponsors until the ratio recovers. The lower default level is an event of default. A DSCR sitting between the two is a cash-trap, not a crisis.

Why does minimum DSCR matter more than average DSCR?

Covenants are tested every period, so a single bad period breaches regardless of how strong the average is. That is also why an average or aggregate DSCR quoted on its own is a weak metric — it can hide a breach entirely.