Chirayuthchai TraisaengsatheanStrategic Finance for Property Development
THEN

DSCR and debt sculpting

Enter periodic CFADS and a target DSCR to calculate the sculpted debt service and debt capacity

Read alongside Real Estate Project Strategic Financial Management Handbook: A Practical Guide · Part 3
The figures entered are hypothetical examples. Every field can be edited.

Rate per period = annual rate ÷ number of periods per year
Periodic CFADSTHB million
Periods–
Total–
Lowest–
Peak–
Cash flow available for debt service, starting from the first repayment period. Press Enter to move to the next period. Pasting several numbers into one box fills the following periods.
times, 1.00 or higher
% per year, fixed for the life of the loan
THB million. Enter 0 if you do not want a comparison
Debt capacity at target DSCR–
Summary of results
Total debt service–
Total interest–
PV of CFADS at the interest rate–
Tested loan amount vs debt capacity
Constant DSCR the tested loan amount can support–
Minimum DSCR if repayments are level in every period, at the same debt capacity–
Sculpted debt service (THB million)
PeriodCFADSDebt ServiceDSCR
Debt schedule (THB million)
PeriodOpening balanceInterestPrincipalClosing balance

Results are calculations for learning purposes only. The figures entered are hypothetical examples, not real project data, and are not investment or tax advice.

How to use

  1. Enter the CFADS for each repayment period in chronological order
  2. Enter the target DSCR the lender requires and the interest rate
  3. Debt capacity is the present value of the sculpted debt service. If the tested loan amount is higher, reduce the loan amount or extend the cash flow.

Assumptions and limitations

  • Debt service in period t = CFADS in period t ÷ target DSCR. In periods where CFADS is negative, debt service is zero.
  • Debt capacity = sum of debt service ÷ (1 + r)^t, assuming the loan is drawn in full at period 0 and repaid at the end of each period.
  • If the principal in any period is negative, debt service is not enough to cover interest and the debt balance rises in that period. The page will show a warning.
  • Excludes loan fees, grace period, DSRA reserve, tax effects of the debt structure and floating interest rates.
  • CFADS must be calculated according to the definition in the loan agreement, which differs between lenders.
The target DSCR and the CFADS definition are agreed with the lender. This result is for preliminary assessment only and must be checked against the model and the actual contract terms.

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