Debt

How to use

The Standard Financial Model includes a core component on the Forecast sheet that creates a default debt amortization schedule and applies it to all new debt. Inputs live in the optional debt repayment section on Get Started.

The Runway Tool does not include automatic debt repayment calcs. Enter new debt, repayments, and interest manually.

On Forecast, any line assigned to Debt Financing sums into total new debt for that period. The model handles the accounting: cash flows from financing on the Statements sheet, and debt calculations on Forecast that create a cohort schedule of principal and interest payments for each new debt issued.

• Principal repayments flow to cash flows from financing on Statements.
• Interest payments flow to other income on the Income Statement.
• The result sets total debt outstanding on the Balance Sheet.

Convertible Debt

Separate from Convertible Notes, which don't typically have principal repayments and convert into equity. The model treats convertible debt separately, including any accrued interest.

Working Capital Lines of Credit

Working capital lines (revolvers) aren't prebuilt. "Changes in Working Capital Loan Facility" is a category in the expense dropdown so you can build your own logic. Balance Sheet and Statement of Cash Flows include the line automatically.

How it works

Inputs on Get Started apply to all new debt:

• Annual Interest Rate — interest expense is assumed paid in cash. To accrue instead, add a line to the expense section and select "accrued interest" from the dropdown.
• Total months for repayment — term, in months. Default assumes monthly payments. For different schedules, build the repayment directly in the expense section using the debt repayment and interest expense dropdowns.
• Optional: Interest-only period — months of zero principal payments. Remaining principal is re-rated into the schedule; edit to assume a balloon instead.
• Optional: Balloon payment % — one-time balloon at the selected month that repays remaining principal. Adjust prepayments directly in the repayment schedule.

On Forecast in the debt repayment schedule are two manual overrides:

• Manual Principal Payment Schedule
• Manual Interest Payment Schedule

Inputs are N months from when new debt is issued, not calendar months. These apply to all new debt — for one-off custom schedules, use the core expense section.

Custom debt repayment schedules

In the core expense section on Forecast, select debt financing, debt repayment, or interest expense from the category dropdown. Use the drivers, link custom calculations, or type schedules manually — the model sums them with the automatic calculations.

Existing debt

Existing debt from the opening balance sheet has no prebuilt schedule — the model doesn't know the remaining terms. Enter known repayments and interest manually, or build custom calculations and link them to Forecast.

Mixing automatic and manual

Build separate schedules for any period of debt alongside the automatic calculations. To exclude a period's debt from the automatic calcs, zero out the new debt in column D of the detailed debt payments. That gives you full flexibility for that period while keeping the automatic schedule for others.

To split debt types per period, reduce (rather than zero out) the new debt entering the automatic calc by the amount you're handling manually. Useful for different types of debt at different rates.