Plan solar debt service using lender-ready project assumptions. Test fees, compounding, and interest-only phases quickly. Export schedules and compare scenarios for confident approvals faster.
| Scenario | Project Cost | Debt Share | Rate | Term | IO | Balloon | Fee |
|---|---|---|---|---|---|---|---|
| Standard commercial | $500,000 | 70% | 8.50% | 10y | 6m | 0% | 1.25% |
| Longer tenor | $1,200,000 | 75% | 7.25% | 15y | 12m | 10% | 1.00% |
| Higher-rate bridge | $350,000 | 65% | 10.50% | 7y | 0m | 0% | 1.50% |
Solar projects often blend equipment cost, interconnection work, and construction contingencies into a single financed budget. Debt service planning converts that budget into scheduled payments so you can confirm affordability, lender compliance, and cash timing. This calculator links principal, interest, and payment frequency into a clear schedule you can share with stakeholders.
During procurement and installation, revenue may be limited or delayed. An interest-only period reduces early cash strain by paying interest while holding principal flat. When commissioning is complete, amortizing payments begin and principal reduces over time. Modeling both phases helps avoid surprises at commercial operation.
Lenders may quote a nominal annual rate but accrue interest using a compounding convention. If payments occur monthly or quarterly, the effective rate per payment changes. This tool converts nominal rate and compounding frequency into a per‑payment rate so the schedule reflects realistic accrual between due dates.
A balloon leaves a portion of principal unpaid at maturity, reducing periodic payments but creating a refinancing or payoff need later. Balloon sizing should reflect expected asset life, contracted revenue, and refinancing risk. Use the balloon percent to test how near‑term savings trade off against the end payment.
Debt service coverage ratio (DSCR) compares cash available for debt service (CFADS) to scheduled payments. A stronger DSCR improves financing terms and resilience under production or pricing variability. Enter annual CFADS to estimate first‑year DSCR, then use CSV export to align internal budgets with lender reporting.
Debt service is the scheduled payment amount per period, combining interest and principal, plus any extra principal you add. If a balloon remains, the final payoff is included at maturity.
Use interest-only when the project is under construction or ramping revenue. It lowers early payments and preserves cash, but increases later amortizing payments because principal is not reduced during the interest-only phase.
The tool converts nominal annual rate and compounding frequency to a per‑payment rate using an effective rate formula. This helps match interest accrual between payment dates for monthly, quarterly, or annual schedules.
A balloon is the remaining principal due at maturity. It reduces periodic payments, but creates refinancing or payoff risk. Use it when you expect a refinance, sale, or strong cash position at the end.
The upfront fee is a percentage of the loan amount. If you capitalize it, the fee increases principal and interest costs. If not capitalized, principal stays lower but you pay the fee outside the loan.
DSCR is CFADS divided by first‑year debt service. It’s a quick affordability check used by lenders. Higher DSCR generally indicates more cushion against production shortfalls or operating cost increases.
Extra principal shortens repayment and can reduce total interest. It’s useful when cash is strong or you want faster deleveraging. If a balloon is set, the tool caps extra principal near that target balance.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.