Borrowing-power calculator
Enter annual revenue, operating margin and existing annual debt service. See discretionary cash flow and an illustrative borrowing range. Educational illustration — not a credit decision or offer.
Visible formulas
Discretionary cash flow = operating income − existing annual debt service
Illustrative range = discretionary cash flow × 2 to × 4
Before you enter your numbers
- Use operating margin, not gross margin — lenders care what survives operating expenses.
- Include all existing debt service: loans, leases treated as debt, owner draws that must continue.
- One currency, one twelve-month period, consistent tax basis.
- The 2×–4× multiple is a rough illustration only — actual underwriting uses DSCR, collateral, credit and industry.
A worked example
$1,200,000 revenue × 18% margin = $216,000 operating income. Minus $60,000 existing debt service = $156,000 discretionary cash flow. Illustrative range: $312,000 to $624,000. Check this against the DSCR calculator — lenders underwrite coverage, not multiples.
Common questions
Is this what a lender will offer?
No. This is illustrative arithmetic from three inputs. Real offers depend on DSCR, collateral, credit history, industry risk and the lender's own criteria.
Why a range instead of one number?
Because the multiple is the roughest part of the model. The range shows how sensitive the answer is to that assumption — which is itself the lesson.
Does the calculator store my numbers?
No. Calculations run in your browser. Reloading resets the example. See Privacy.
Calculator output does not establish prices, credit decisions, quotes or suitability for any decision. Ameti Capital is not a lender or broker. See Use & limitations.