Debt and cash Updated November 2026

Revolver

A revolving credit facility plugs cash shortfalls: the model draws the amount needed to restore minimum cash and repays with any cash above the minimum. Revolver change = MAX(minimum cash - cash before revolver, -opening revolver balance), which is positive for a draw and negative for a repayment.

Syntax

Revolver change = MAX(min cash - cash before revolver, -opening revolver)

Part	What it is
`cash before revolver`	Opening cash + all cash flows for the period except the revolver
`min cash`	Operating cash the company must keep
`opening revolver`	Balance drawn at the start of the period

Examples

Cash before revolver 30, minimum cash 50, opening revolver 0
=MAX(50 - 30, -0)

Result: Draw 20; closing cash 50, revolver 20

Next year: cash before revolver 90, minimum 50, opening revolver 20
=MAX(50 - 90, -20)

Result: -20, a full repayment; closing cash 70, revolver 0

Cap the draw at the facility size of 100
=MIN(MAX(min - cash_pre, -opening), 100 - opening)

Result: never draws beyond the commitment

Common mistakes

Computing revolver interest on the closing balance, which makes interest depend on the draw and the draw depend on interest; use the opening balance or a circularity switch.
Letting the repayment exceed the opening balance, producing a negative revolver; the -opening term in MAX prevents it.
Forgetting the commitment fee on the undrawn portion in a detailed LBO model.

Practice Revolver

These drills check your answer on live data, free, no account needed.

Revolver draw and repayment ruleThe company keeps at least the minimum cash in B2 by drawing on a revolving credit line, and repays the line when it has cash to spare. Fill the opening revolver for later years (row 6), the draw or repayment (row 7) and the closing revolver (row 8). Draw the shortfall below the minimum; when cash is above the minimum, repay as much of the line as the excess allows.
Cash and revolver, fully linkedNow link the cash too. Each year starts with last year's closing cash, adds the cash flow, then draws on or repays the revolver to keep the minimum in B2. Fill rows 7 to 12 (the first opening cash and opening revolver are set).
Cash roll-forwardRoll cash forward. Outflows are already negative. Closing cash (row 10) is opening cash plus all the flows in rows 6 to 9. Each later year opens with the prior closing cash.

Questions

Why does my revolver create a circular reference?

Because interest on the revolver reduces cash, which changes the draw, which changes interest. Base interest on the opening balance, or turn on iterative calculation with a switch.

What minimum cash balance should I assume?

Enough for operations, often a few percent of revenue or a stated amount from management. It is an assumption; put it in the inputs block.

Debt scheduleA debt schedule rolls each loan forward: closing = opening + draws - repayments, with interest on the opening balance. Layout, example, amortization, sweeps.
Circular referencesInterest on the average debt balance makes a model circular. How to enable iterative calculation in Excel, add a circularity switch and fix a broken model.
Interest on the opening balanceInterest = rate x opening balance avoids a circular reference; rate x average balance is more accurate but circular. Both formulas, an example, when to use.
Cash flow from operationsCFO = net income + D&A + other non-cash charges - increase in working capital. How the indirect method works line by line, a worked example and sign errors.