Portfolio Cash Sweep Calculator

Cash sweeps redirect property cash flow to portfolio obligations before distributions.

Portfolio cash flow

Reserve requirements

Senior debt requirements

Mezz/pref requirements

Available for distribution

$3,500,000

Total sweep required

$21,500,000

Distribution ratio

0.1%

How the math works

Sweep = reserves + senior + mezz/pref. Available = cash flow − sweep.

$25M CF − ($2.5M reserves + $15M senior + $4M mezz) = $21.5M sweep. $3.5M available = 14%.

How to Use

Enter portfolio cash flow.
Enter reserve requirements.
Enter senior debt requirements.
Enter mezz/pref requirements.
Read available for distribution.

Frequently Asked Questions

What is a cash sweep?

A lender covenant (typically triggered by DSCR falling below threshold) that automatically sweeps all or part of property cash flow into a lender-controlled reserve account. Prevents sponsor from taking distributions while debt is at risk. Common in CMBS loans (hard lockbox — rent goes to lender account, lender pays expenses and debt service, excess to sponsor). Debt fund loans often have softer sweep triggers (1.15 DSCR trigger, 1.25 release).

Sweep vs lockbox?

Soft lockbox: tenant pays to sponsor-controlled account; sponsor funds loan servicer. Lender only takes over in default. Springing lockbox: triggers hard lockbox upon covenant breach. Hard lockbox: always lender-controlled, sponsor receives excess only. Sweep: during triggered period, sponsor receives nothing — all cash flow held. CMBS loans universally have lockbox; bank loans rarely have full lockbox for stabilized assets but often have sweep on value-add or construction.

When is cash sweep triggered?

Typical triggers: (1) DSCR below 1.15-1.25 (measured monthly or quarterly), (2) debt yield below 8-10%, (3) major tenant default (loss of anchor), (4) operating covenant breach, (5) approach to maturity (sometimes 6-12 months before, to build cash for payoff). Sweep lasts until cure (metrics recover for 2-4 consecutive quarters). Institutional operators build covenant cushion; amateur operators get surprised by sweep and scramble for partner capital.

Portfolio-level cash management?

Beyond single-loan sweeps, portfolio sponsors manage cash flow across properties. Excess from performing assets can cover shortfall elsewhere. Capital calls are last resort. Reserve accounts (6-12 months expected debt service) at portfolio level reduce individual-loan sweep triggers. Sophisticated sponsors run weekly cash dashboards showing sweep-at-risk assets, buffer capacity, and potential capital-call triggers. This is institutional CFO-level work.