Interactive tool
Covenant Headroom Calculator
The two covenants that trip most middle-market borrowers are DSCR and leverage. Enter your numbers to see where you stand against each — and how much EBITDA could fall before a covenant binds.
Your covenant position
DSCR
Covenant: ≥ 1.20x · higher is safer
1.85x
In compliance
Leverage
Covenant: ≤ 3.00x · lower is safer
2.50x
In compliance
EBITDA headroom before a covenant trips
$400,000
EBITDA could fall to about $2,000,000 before the tighter covenant binds.
Simplified estimate using standard DSCR and funded-debt/EBITDA definitions. Real credit agreements define these terms precisely (add-backs, leases, cash netting). A turnaround CFO builds the exact bridge to your agreement.
Headroom is the whole game in a lender relationship: knowing it early is the difference between a managed conversation and a default. If a covenant looks tight, a turnaround CFO builds the exact bridge to your credit agreement and the plan back into compliance. Book a working session.
Book a working session.
A 20-minute call, a clear read on your numbers, and a straight answer on whether a fractional CFO is the right call right now.