Debt Covenant Compliance Dashboard

Most credit agreements don't fail on a missed payment, they fail on a covenant ratio quietly drifting past a line nobody was watching closely enough.

Reading This Tool

How To Use This Calculator

Enter your current debt, earnings, interest cost and working capital position.

This checks the three ratios that show up in almost every commercial credit agreement, leverage, interest coverage and the current ratio, against typical covenant thresholds. Your actual agreement's specific numbers may differ, but the shape of the risk is usually the same.

Your Inputs

Total Interest-Bearing Debt $3,500,000

Trailing 12-Month EBITDA $1,200,000

Annual Interest Expense $210,000

Current Assets $900,000

Current Liabilities $750,000

EBIT for interest coverage is approximated here as EBITDA less 15% of EBITDA for illustrative depreciation and amortization, your actual EBIT will differ based on your specific asset base.

Covenant Status

Your Ratios vs. Typical Covenant Thresholds

Your Ratio Typical Threshold

Thresholds shown are common middle-market benchmarks, not your specific credit agreement. Always check your actual covenant definitions, which frequently adjust EBITDA for specific add-backs your lender has agreed to.

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