In this study a tool for assessing residual strength of debond damaged laterally loaded sandwich panels is developed. The analysis tool consists of a parametric finite element model and a fracture mechanics calculation procedure to determine the residual strength. The parametric approach allows variation of all geometric and material entities. The fracture mechanics calculation uses crack flank displacements obtained from the finite element analysis solution and experimentally measured mixed-mode fracture toughness values to determine the ultimate failure load. The analysis tool is validated with a number of different ship type panels. Debond criticality is evaluated by using the developed tool and by comparing the test results from panel experiments. The comparison shows that the analysis tool predicts both failure load and failure mode well. The tool can be used to determine the residual strength of different damage cases and has a considerable potential for further development.