A step-by-step method for converting every debt payment to a monthly figure and measuring what share of revenue goes to debt.
Your debt-payment burden is the share of revenue committed to debt payments. It's one of the clearest indicators of financial pressure.
Step 1: Convert every payment to monthly
- Daily (business days): multiply by about 21.67
- Weekly: multiply by about 4.33
- Every two weeks: multiply by about 2.17
- Monthly: use as-is
Step 2: Add them up
Include MCAs, loans, lines of credit, equipment financing, and any other recurring debt payments.
Step 3: Divide by average monthly revenue
Use a realistic average from recent months, not your best month.
Step 4: Subtract operating expenses
Revenue minus operating expenses minus debt payments shows what's left. If it's negative or very thin, that's a strong signal to explore options.
Our stacked MCA payment calculator and cash-flow calculator do this automatically.
This article is for general educational purposes only and is not legal, tax, or financial advice. Consult a qualified professional about your specific situation.
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