The working desk / Cash-flow lens
What debt could your cash flow carry?
Set a loan, rate and repayment term. See the payments, the coverage and how much room remains when interest is higher.
No sign-up · Your assumptions · Calculated in your browser
Illustrative starting values · Every assumption below is editable.
01 / Set the assumptions
After operating costs, cash tax, capital expenditure and working-capital movements; before debt payments. This is not EBITDA.
Principal and interest that will remain after the new loan. Exclude facilities being repaid by a refinancing.
The principal you want to test, before any fees.
Enter a nominal all-in interest rate. Excludes arrangement, advisory and other fees.
Whole years, repaid in full through equal monthly payments. No balloon or interest-only period.
Cash available ÷ total annual debt service. Choose your own planning threshold; this is not a lender requirement.
An increase in percentage points, applied to the proposed loan for its whole term. Existing debt service stays unchanged.
02 / Read the cash-flow test
Additional principal supported at your chosen 1.25× coverage
£2,671,415
A cash-flow calculation using your rate and term. Lenders also assess the business, security and credit risk.
- Monthly payment on your loan
- £60,829
- Combined debt-service cover
- 1.14×
- Total annual debt payments
- £879,950
- Annual cash after debt payments
- £120,050
The proposed loan falls below your chosen coverage test. Annual cash would need to be £99,938 higher to meet it at these terms.
Assumes constant annual cash flow and existing debt service. Rounded for display. No fees, balloon payments or seasonal cash-flow test. This is not a finance offer or an assessment of eligibility.
03 / Change the conditions
What if interest is higher?
The same loan and repayment term, at your two interest assumptions. This compares two fixed-rate scenarios from day one; it does not forecast rates or model a mid-term reset.
| Cash-flow measure | Your rate 8% | Higher rate 10% (+2pp) |
|---|---|---|
| Monthly payment on proposed loan | £60,829 | £63,741 |
| Combined debt-service cover | 1.14× | 1.09× |
| Additional principal at chosen coverage | £2,671,415 | £2,549,374 |
| Total interest on proposed loan | £649,751 | £824,468 |
04 / Put the numbers in context
A useful starting point for a financing conversation.
Solon can read the cash flow alongside the wider credit case, the purpose of the raise and the terms on offer. A first conversation is confidential and costs nothing.
Calculations happen in your browser. Choosing “Review” temporarily keeps these inputs in this tab for up to 30 minutes so you can check them on the enquiry page. No financial values are added to the link.
The method
One lens on debt capacity.
Coverage is annual cash available for debt service divided by annual principal and interest payments. The calculator deducts your existing debt service from the payment capacity at your chosen coverage, then converts the remainder into a fully amortising loan.
Payments are monthly, in arrears, using your nominal annual rate divided by 12. At zero interest, principal is divided by the number of months. The model assumes unchanged cash flow and existing payments throughout. It does not test security, leverage, fees, covenants or monthly liquidity.
Definitions: British Business Bank on cash available for debt service; CFPB on the mechanics of amortisation (consumer-loan explanation; used here for payment mechanics only). Neither source supplies the scenario assumptions.
Read the wider case
How lenders assess debt capacity
Cash flow, earnings and assets: why a single calculation cannot answer the whole question.
Read a specimen debt model
A fictional borrower, with a debt schedule, covenant tests and a monthly liquidity walk.
Understand the components of debt pricing →