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Funding Readiness and Debt Capacity Calculator

FreeAbout three minutesValue, exit and funding
What it does

Estimates how much you could borrow and how a lender would read your leverage and interest cover.

How it helps

It shows your realistic borrowing envelope and how your numbers look from the other side of the table, so you approach funding from a position of preparation rather than hope.

How this benchmark is calculated

This is an indicative benchmark built from ProfitPulse's internal commercial ranges, not a published market average. Treat it as a commercial signpost, not a formal industry survey and not financial advice. We move the range to suit your broad industry, your business size and how commercially complex it is.

In about three minutes, free, you will see an indicative debt capacity range, their leverage and interest cover position, and how a lender would band their file today.

Funding Readiness and Debt Capacity

Answer a few quick questions to see where you stand.

How the borrowing capacity is calculated

The formula

Interest cover = EBITDA divided by your annual interest cost. Indicative capacity is shown as a multiple of EBITDA.

Worked example

EBITDA of 500,000 dollars against 80,000 dollars of interest gives cover of about 6.25 times. Indicative capacity at 2.5 to 3.0 times EBITDA points to roughly 1.25 to 1.5 million dollars.

How to read your result

Strong means lenders would read your file favourably and capacity exists. Worth a closer look means borrowing is possible with conditions to manage. Significant opportunity means the base needs restructuring before it grows.

What each figure means

  • EBITDA for the last 12 months: Profit before interest, tax, depreciation and amortisation. If unsure, use net profit before tax and we will treat the result as indicative.
  • Total debt balance across all loans and facilities: The total you owe across all loans and facilities.
  • Annual interest cost across all facilities: Your total annual interest cost across all facilities.

Common questions

What is interest cover?

Your EBITDA divided by your annual interest cost. It is the ratio a lender looks at first.

How is borrowing capacity estimated?

As an indicative multiple of EBITDA. It is a guide to your envelope, not an offer.

What if my numbers look weak?

Often the fix is restructuring existing facilities first, which can unlock both better pricing and capacity.

How ProfitPulse can help

If funding is on the horizon, our capital raise support positions the file, chooses the right instrument and brings lenders to the table on better terms.

More from ProfitPulse: a business valuation, preparing for a capital raise and a fractional CFO on the Gold Coast.