Covenant Headroom Calculator
Spot calculator for one covenant. Input the current value, threshold, comparison operator, and your headroom buffer percentage. Get back the actual headroom, breach risk, and the three-state status (Compliant / At Risk / Breached). Same logic CapitalBridge runs in production across 191+ counterparties, exposed here as a single-covenant version.
Inputs
Type to recalculateLatest covenant value
Agreement floor / ceiling
Threshold for At Risk vs Compliant
Result
DSCR ≥ 1.20xShow formula trace
Want this across 191 borrowers, automatically?
CapitalBridge runs this exact calculation on every borrower data submission, across every covenant, with configurable headroom buffers per facility. Status flips automatically. Alerts dispatch. SHA-256 chained audit trail records every change. Production-proven across 7 funds, 191+ counterparties, 23 countries.
The math behind the gauge
Covenant headroom is the gap between the current value and the threshold, expressed as a percentage of the threshold. The headroom buffer is a credit-policy parameter that flips status from Compliant (green) to At Risk (amber) before a breach happens.
- Min covenant (DSCR, ICR, Min Cash): headroom = (current - threshold) / threshold
- Max covenant (LTV, leverage): headroom = (threshold - current) / threshold
- Status: headroom < 0 = Breached. headroom < buffer = At Risk. else Compliant.
"Headroom is the difference between knowing about a breach before it happens and explaining one after the fact. The buffer is where credit policy meets math."
See how it works with your portfolio structure
Book a 30-minute demo. We configure it with your actual portfolios, categories, and counterparties so you see exactly how CapitalBridge fits. No generic product tour. You talk to the team that built it.
"The gap between a $200K enterprise platform and a shared spreadsheet should not be this wide. We built the thing that belongs in that gap."