Cash Sweep Duration Calculator

Cash sweeps continue until trigger conditions clear. This calculator forecasts duration.

Current DSCR

Release DSCR

Monthly DSCR gain

Monthly FCF swept

Months to release

Cash swept total

$450,000

DSCR gap to close

0.15

How the math works

Months to release = DSCR gap ÷ monthly DSCR improvement.

Sweep duration affects equity IRR more than coupon. Optimize NOI improvement velocity; each month shaved off sweep returns 1 month of distributions to sponsor.

How to Use

Enter current DSCR.
Enter sweep release DSCR.
Enter monthly NOI improvement.
Enter monthly free cash flow to sweep.
Read sweep months remaining.

Frequently Asked Questions

Release conditions?

Typically 2-3 consecutive test periods above sweep threshold. Sometimes combined with principal paydown to reach threshold LTV. Document release conditions at origination.

NOI improvement?

Occupancy gain, rent increases, expense reduction, tenant mix change. Each drives monthly NOI up. 3-6 months of 2-3% improvements often needed to clear sweeps.

Principal paydown?

Aggressive principal paydown from swept cash improves DSCR faster than NOI growth alone. Some lenders credit principal payments toward sweep release. Negotiate language.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.