Tentt

Sources & Uses Table Builder

Build a balanced LBO sources and uses table with auto-computed sponsor equity plug. Unlimited line items on both sides, error detection on over-subscribed sources.

Total uses

$193,000,000

Sponsor equity (plug)

$65,000,000

33.7% of uses

Total sources

$193,000,000

Balanced

Uses

$
$
$
$
Total uses$193,000,000

Sources

$
$
$
$
Sponsor equity (plug)$65,000,000
Total sources$193,000,000
100% private

Your numbers never leave your browser. Tentt has no backend, no database, and no record of anything you type into this calculator — the math runs entirely on your device. Output is for illustrative modelling only and does not constitute investment, tax, legal, or accounting advice; verify any number you intend to act on.

What is a sources and uses table?

The sources and uses table is the first exhibit in every LBO model, every M&A deal memo, and every capital-raise pitch deck. It shows where the money to fund a transaction is coming from (the sources) and where every dollar of it will be spent (the uses). The two columns must always sum to the same total — the table is mechanically required to balance, and the sponsor equity line is the conventional plug that makes the math work. If you fix every other source line and every use line, the required sponsor equity falls out as the difference between total uses and the sum of all the other source lines.

Despite being the most common single exhibit in middle-market PE and M&A modelling, sources and uses tables have no free interactive web tool. Every search result is either an Excel template (paid or email-gated) or an educational article that walks through the structure without letting you actually build one. This page is the comprehensive free version, with auto-balancing equity plug, error detection on over-subscribed sources, and unlimited add/remove of line items on either side.

The balancing rule

Every sources and uses table follows a single arithmetic constraint:

Balancing constraint

Σ Sources = Σ Uses

Equity plug

Sponsor Equity = Σ Uses − Σ (Sources excluding equity)

This is why the conventional layout always puts sponsor equity at the bottom of the sources column — it gets computed last, after every other source line has been fixed by the financing structure. The calculator above does exactly this: type in any combination of debt instruments, seller notes, and management rollover on the sources side, and the sponsor equity figure auto-calculates to make the table balance.

Worked example

Worked example

A sponsor is buying a business services company for $160M equity value. The target has $25M of existing debt that needs to be refinanced. M&A and legal fees come to $4.5M; financing fees and OID add $3.5M. Total uses: $193M.

Lenders provide a $90M senior term loan and the sponsor places $25M of mezzanine debt. The seller takes a $5M seller note (rollover); the CEO rolls over $8M of management equity. Total non-sponsor sources: $128M.

Required sponsor equity plug: $193M − $128M = $65M. The deal balances at $193M total on both sides, with sponsor equity making up ~33.7% of total funding — which translates to a leverage ratio of roughly 5.75x EBITDA on the $20M-EBITDA target ($115M of total debt / $20M EBITDA).

When you'll use this

Every LBO model starts with a sources and uses table. Every M&A pitch deck includes one in the appendix. Every capital-raise mandate produces one for the lenders' credit committee. It is the exhibit that translates a deal multiple into a capital structure, and a capital structure into a required sponsor equity check — which then flows into every downstream return calculation.

The output of this tool feeds directly into the LBO calculator (the equity plug becomes the sponsor equity input, the senior + mezz lines become the leverage input). For the offer-price-to-EV translation that produces the purchase price line in the uses column, see the enterprise value bridge calculator. For the advisory fees that go on the uses side, see the Lehman formula fee calculator. And for sponsor returns once the capital structure is fixed, see the MOIC calculator.

Frequently asked questions

What is a sources and uses table?
A sources and uses table is a two-column exhibit at the top of every LBO model, M&A deal memo, and capital-raise pitch that shows where the money to fund a transaction is coming from (sources) and where every dollar will be spent (uses). The two sides must always sum to the same total — that's the whole point of the exercise. The sponsor equity line is conventionally the 'plug' that makes the table balance: whatever amount of equity the sponsor has to write to fill the gap between total uses and the sum of all other sources.
What goes on the uses side?
The standard use lines are: (1) purchase price for the equity of the target — the offer the sponsor is making to shareholders, (2) refinancing of any existing debt the buyer is not assuming and the seller cannot leave in place, (3) transaction and advisory fees including the M&A advisor's success fee, legal fees, accounting fees, and consulting diligence, (4) financing fees and original issue discount on the new debt, (5) any cash contributed to the target's balance sheet at close, and (6) working capital adjustments if the deal is being marketed on a 'cash-free, debt-free' basis.
What goes on the sources side?
The standard source lines are: (1) senior secured debt — typically a term loan B or revolver, (2) second lien or mezzanine debt, (3) seller note or earn-out structures where part of the purchase price is paid over time, (4) management rollover equity from the existing executive team, (5) any cash on the target's balance sheet that the buyer can use to fund the transaction (creates a circular reference and is normally avoided), and (6) sponsor equity, which is the conventional plug to make the table balance.
Why does sponsor equity have to balance the table?
Because the sponsor controls the equity check — they decide how much they want to put in based on how much debt the lenders will provide, the seller note, and the management rollover. Once those other components are fixed, whatever's left to fund the total purchase price has to come from the sponsor's equity commitment. In an LBO, the sponsor is solving for a target leverage ratio (e.g. '60% debt') by working backwards from total uses, fixing the debt amount, and then writing whatever equity check is needed to close the gap. The calculator above auto-computes the equity plug as you edit either side.
What if total sources exceed total uses?
That means the deal is over-financed and the sponsor needs to reduce one of the source lines — most commonly by taking out less debt than the lenders offered, or by reducing the seller note. Lenders will not allow a deal to close with the source side over-subscribed because the excess cash would just sit on the balance sheet earning nothing. The calculator above flags an error state when sources exceed uses to make this immediately visible.
How is this different from a capital structure summary?
Sources and uses is a transaction-level table that shows the cash flows at close. A capital structure summary shows the post-close balance sheet — the new debt instruments, their seniority, their pricing, their maturities, and their covenants. The sources column of the S&U table feeds directly into the capital structure summary because every source line item becomes a balance sheet line on day one of the new entity. The two exhibits are paired in every LBO model: S&U on the left page, capital structure summary on the right.

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