Do not enter data into shaded cells.
Only enter data into white cells.
This business loan calculator is for small business owners and entrepreneurs. It will help them determine what the monthly payment would be for a business loan. Also, the likelihood of approval based on the business’s cash flow and other monthly (loan) payments. This loan calculator can be used to model the small business’s present or anticipated financial situation. The entrepreneur can use this calculator for their own business management purposes or to prepare for the loan application process. Knowing the effect of additional financing on cash flow will help the business owner proactively plan. Additionally, being better prepared for the loan application process will help them save time.
Business loan information
Enter the Loan amount and Interest rate per year.
The Loan term can be entered in years or months. Do not enter both.
Cash flow & monthly obligation information
Pull this information from your financial statements.
Cash flow information is annual. Monthly obligation information is, of course, monthly.
Your estimated debt service coverage
Debt service coverage = Business annual net operating income ÷ ((New loan monthly payment + Business total monthly obligations) × 12)
A debt service coverage ratio of 1.25 is a rule-of-thumb minimum for loan qualification. Your financial institution may have different requirements.
Related information
Do You Have to Secure a Loan to Start a Business? Be Prepared