Business Loan Affordability Calculator — Can Your Business Afford It?
Calculate DSCR and see if your business can afford a loan.
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Your Results
DSCR
7.23
Monthly Payment
$2,076
Qualification
Qualifies (DSCR ≥ 1.25)
Max Loan
$578,080
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How This Calculator Works
DSCR = Annual NOI / Annual Debt Service. Monthly payment = Loan × (r(1+r)^n)/((1+r)^n-1). Lenders require DSCR ≥ 1.25 for most business loans. Maximum loan = amount where DSCR exactly = 1.25.
Frequently Asked Questions
Debt Service Coverage Ratio = Annual Net Operating Income ÷ Annual Debt Payments. Lenders require 1.25+ (meaning income is 25% more than debt payments).
Depends on revenue, cash flow, credit score, and collateral. SBA loans up to $5M. Online lenders: $5K-$500K. Use DSCR ≥1.25 as your guide.
700+ for bank loans. 650+ for SBA loans. 600+ for online lenders (but rates will be higher). Build credit before applying.
SBA 7(a): 6-9%. Bank loans: 5-8%. Online lenders: 10-30%. Equipment financing: 4-10%. Your rate depends on credit and revenue.
Business loans preserve personal capital and build business credit. Use loans for revenue-generating assets (equipment, inventory). Not for payroll emergencies.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.