How to use the business debt capacity calculator
Prepare the values for this calculation
Estimate planning debt capacity from EBITDA and an explicitly selected debt/EBITDA multiple. Use the formula below to check that it answers your question. Read the input units before transferring figures from a statement, measurement or dataset.
Enter and check each input
- EBITDA: enter a value at least 0. Use the unit named in the label or selected above. Do not leave this required field blank.
- Target debt/EBITDA multiple: enter a value at least 0. Use the unit named in the label or selected above. Do not leave this required field blank.
- Existing debt: enter a value at least 0. Use the unit named in the label or selected above. Do not leave this required field blank.
The input table gives a complete example. Keep units and time periods consistent across related fields.
Calculate and resolve any input error
Choose Calculate after entering the values. Changes also update the answer after a short pause. If an error appears, follow its message, correct the field and calculate again. Reset restores the example values.
Interpret the answer
Check Additional modeled debt capacity first. With the unchanged example inputs, it is $2,000,000.00. Compare the additional metrics with the primary result; each has its own label and unit.
Compare and keep a useful result
For a controlled comparison, keep every other example input unchanged and change EBITDA from 1000000 to 1100000. The resulting Additional modeled debt capacity is $2,300,000.00. This illustrates the equation’s response to that input, rather than a forecast of real events.
Read the chart’s axis labels and data table. A scenario curve changes one stated input while holding the others fixed; it does not add external observations. Use Download graph to save an available chart as a PNG.
Use Copy result or Download CSV to keep the answer. Share tool shares the page address without placing your input values in the URL. Recheck inputs and assumptions before using the result for a decision.
Business Debt Capacity Calculator formula
Gross debt capacity=EBITDA×target multiple; additional capacity=gross capacity−existing debt.
Inputs and units
| Input | Format / range | Example |
|---|---|---|
| EBITDA | minimum 0 | 1000000 |
| Target debt/EBITDA multiple | minimum 0 | 3 |
| Existing debt | minimum 0 | 1000000 |
Worked example
Using the example inputs above, the additional modeled debt capacity is $2,000,000.00.
- Additional modeled debt capacity
- $2,000,000.00
- Gross modeled debt capacity
- $3,000,000.00
- Existing debt
- $1,000,000.00
- Excess debt above modeled capacity
- $0.00
Results and assumptions
This is a leverage-multiple planning model, not a lender underwriting decision.
Fix an input or unexpected result
EBITDA is required. Enter ebitda using the format and bounds in the input table. Zero and an empty field are different: use zero only if it is allowed and represents your data.
If your answer differs from the example, choose Reset and compare every field, including selected units and options. Check percentage versus decimal entry and whether values describe the same period. Round only the final displayed answer when reproducing the formula.
If a discrepancy remains, report the calculator issue with the page address, non-sensitive example inputs, actual result, expected result and a reference for your calculation.