Settlement planning
Settlement Payment Affordability Stress Test
See which months a proposed settlement payment would push cash below your minimum reserve.
How to use this calculator
- Gather proposed payments; operating cash; seasonality; minimum reserve. Use documents covering the same date or period.
- Replace the example values with your own figures. Add or remove rows to match your records. Change one assumption at a time to compare scenarios.
- Review months with shortfalls; maximum affordable scenario payment. Open the breakdown and export a copy for discussion.
How the calculation works
For each month, add operating net cash and subtract the proposed payment. The minimum closing cash identifies the worst point. Constant payment capacity is the smallest cumulative cash-above-reserve divided by elapsed months.
Worked example
These results use the editable example values shown in the calculator. They illustrate the method and do not predict an offer or outcome.
- Extra opening cash needed
- $0.00
- Lowest cash balance
- $24,000.00
- Closing cash balance
- $32,000.00
- Constant monthly capacity in scenario
- $8,400.00
Questions about the results
What does this tool include?
See which months a proposed settlement payment would push cash below your minimum reserve. For each month, add operating net cash and subtract the proposed payment. The minimum closing cash identifies the worst point. Constant payment capacity is the smallest cumulative cash-above-reserve divided by elapsed months.
What should I verify before relying on the result?
Operating net cash must be after taxes, normal operating expenses and other debts, but before this proposed payment. The result is a cash-flow scenario, not creditor approval.
What this result does and does not tell you
Operating net cash must be after taxes, normal operating expenses and other debts, but before this proposed payment. The result is a cash-flow scenario, not creditor approval.