Business financing

Business Loan Calculator

Estimate monthly and annual debt service, fees, cash proceeds, total borrowing cost, and debt-service coverage.

Loan estimate

Monthly payment

$2,028

Principal and interest.

Debt-service coverage ratio

1.64×

Available cash flow ÷ annual debt service.

Financed principal$100,000

Net cash proceeds$97,000

Total fees$3,000

Annual debt service$24,332

Total interest$21,658

Total borrowing cost$24,658

Total scheduled payments$121,658

The payment is an amortization estimate, not a lender quote. Variable rates, balloon payments, guarantees, prepayment terms, SBA guarantee fees, covenants, and lender-specific underwriting are not modeled.

How the loan is modeled

The calculator uses standard fixed-rate monthly amortization. If fees are financed, they increase principal; otherwise they reduce net cash proceeds. DSCR divides entered annual cash flow available for debt service by the loan's annual scheduled payments.

Interpreting DSCR

A ratio of 1.00 means modeled cash flow exactly equals scheduled debt service. A higher ratio provides more cushion, but lenders define qualifying cash flow and required coverage differently.

Important limitations

Assumes a fully amortizing fixed-rate loan with equal monthly payments.
Excludes variable rates, interest-only periods, balloon payments, prepayment penalties, collateral, guarantees, covenants, and taxes.
Approval, pricing, and DSCR requirements depend on the lender and borrower.

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Planning guide

Read the complete guide →

Understand this estimate before using it

Quick answer

What does the Business Loan Calculator do?

Estimate payments, fees, borrowing cost, cash proceeds, and DSCR. It amortizes the financed amount, accounts for fees and net proceeds, and compares payment, annual debt service, total borrowing cost, and entered cash flow coverage.

Formula and calculation method

It amortizes the financed amount, accounts for fees and net proceeds, and compares payment, annual debt service, total borrowing cost, and entered cash flow coverage.

The result is only as reliable as the inputs. Use current balances, rates, fees, dates, and documents; then change uncertain assumptions to see whether the conclusion remains stable.

How to interpret the result

Treat the output as a comparison or planning range, not a quote, approval, eligibility decision, tax return, or prediction. Review the breakdown—not only its headline number—and read every stated exclusion.

For current background, review U.S. Small Business Administration. Product documents and official program tools control when they differ from this educational model.

Worked scenario

Put the result in context

If price is $50 and variable cost is $30, contribution is $20 per unit. With $10,000 of fixed cost, 500 units are needed to cover fixed cost before target profit, tax, financing, and capacity constraints.

This scenario illustrates the method; it is not a quote, forecast, recommendation, or substitute for entering your actual facts.

Before you calculate

Gather current information before changing the defaults. A result based on verified records is more useful than a precise answer built from guesses.

the amount requested

Check the date, unit, and source of this input before entering it.

the rate and term

Check the date, unit, and source of this input before entering it.

the origination fee and other closing costs

Check the date, unit, and source of this input before entering it.

your annual cash flow available for debt

Check the date, unit, and source of this input before entering it.

What the result can answer

It can show how the entered assumptions interact, provide a consistent comparison, and reveal whether changing one important input materially changes the estimate.

What the result cannot decide

It cannot confirm approval, eligibility, market pricing, future performance, legal or tax treatment, contract quality, or whether the choice fits every part of your finances.

A practical next-step workflow

01 · Verify
Compare the inputs with current statements, quotes, official rules, and product documents.
02 · Stress-test
Run a second case with a less favorable value for your annual cash flow available for debt.
03 · Confirm
Check that your debt-service coverage ratio clears the lender's threshold (often around 1.25), and compare the net proceeds against the total borrowing cost before acting.

Frequently asked questions

Can these tools replace a financial model?

They are focused decision aids. A complete forecast may require monthly cash flow, taxes, working capital, financing, and multiple scenarios.

What should I do with uncertain inputs?

Use low, expected, and high cases and identify the inputs that materially change the decision.

What can make this estimate differ from an actual result?

Timing, rounding, rate changes, fees, taxes, eligibility rules, product conventions, and facts not requested by this focused calculator can all create differences.

Which inputs deserve a second scenario?

Retest any input that is quoted rather than fixed, depends on future behavior, or materially changes the result. Conservative and optimistic cases reveal more than false precision.

What should I verify before making a decision?

Verify current statements, disclosures, official rules, taxes, fees, cancellation or prepayment terms, and the consequences of a less favorable outcome.

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Prepared by Loan Lyze Editorial and reviewed under the Loan Lyze editorial framework on November 8, 2026. Educational estimate only. See our methodology, editorial policy, and corrections policy.

Estimate business debt service

How the loan is modeled

Interpreting DSCR

Important limitations