Funded debt to EBITDA (leverage) calculator
Measure how many years of EBITDA it would take to repay a borrower's funded debt, and test it against a leverage covenant.
- Funded debt / EBITDA
- 3.00x
- Within the covenant
- 3.50x maximum
- Additional debt capacity
- $750,000
- EBITDA could fall by
- $214,286 (14.3%)
How to use it
Leverage = Total funded debt / EBITDA
- Funded debt usually means interest-bearing debt, including the line of credit balance and capital leases; check your covenant definition.
- Use trailing twelve-month EBITDA with the add-backs your agreement allows.
- Enter the covenant maximum to see the headroom.
For illustration only. Use your institution's own policy definitions.
