Skip to content

    Under active development. New calculators and features ship every week. Everything currently runs free while the site matures — pricing pages are a preview, checkout is not open yet.

    Search ⌘K
    Calculates locally in your browser
    Loans / Commercial

    Business Loan Calculator

    Payment, interest and the revenue a business needs to service a commercial loan at a chosen coverage ratio. The payment is arithmetic; the coverage is what a lender actually underwrites.

    Monthly payment$7,918Annual debt service$95,019Cash flow required$118,774
    Monthly payment
    $7,918
    84 months
    Annual debt service
    $95,019
    Principal and interest
    Cash flow required
    $118,774
    at 1.25× DSCR
    Revenue required
    $593,868
    at 20% margin
    Coverage requirement
    Debt service coverage is cash flow available for debt service over the annual payment.
    Coverage requirement
    DSCRAnnual cash flow needed
    1×$95,019
    1.15×$109,272
    1.25×$118,774
    1.35×$128,276
    1.5×$142,528
    Inspect the model
    Choose a quick result view, a scaled comparison, or the complete diagnostic set.
    Payment against term
    Longer terms lower the payment and raise the total interest.
    Payment against term0.0003535.567071.131.061e+41.414e+41.768e+436 mo36 mo60 mo60 mo84 mo84 mo120 mo120 mo180 mo180 moBusiness Loan Calculator
    Canonical equations
    The exact relationships implemented by this engine.

    M = P·i/(1 − (1+i)^−n) · Level amortisation.

    CFADS ≥ DSCR × M·12 · The lender’s test.

    finance methodology

    A clear path from inputs to results.

    Payment, interest and the revenue a business needs to service a commercial loan at a chosen coverage ratio. The payment is arithmetic; the coverage is what a lender actually underwrites.

    Step-by-step methodWorked exampleAssumptions explained

    How to use

    1. Set loan amount ($).
    2. Set annual rate (%).
    3. Set term (months).
    4. Set required dscr (×).
    5. Read the headline metrics, then check the table for the detail.

    The formula

    M=P⋅i/(1−(1+i)−n)M = P·i/(1 − (1+i)^−n)

    Reference: Level amortisation plus the DSCR coverage test; SBA SOP 50 10 sets the 1.25× minimum.

    Worked example

    At the default inputs

    Inputs
    • Loan amount ($): 500000; Annual rate (%): 8.5; Term (months): 84; Required DSCR (×): 1.25; Cash flow margin (%): 20
    Calculation path
    1. 1

      Monthly payment: $7,918 · Annual debt service: $95,019 · Cash flow required: $118,774 · Revenue required: $593,868

    Result

    Monthly payment: $7,918 · Annual debt service: $95,019 · Cash flow required: $118,774

    Interpreting the result

    A $500,000 loan at 8.50% over 84 months costs $95,019 a year and needs $118,774 of cash flow.

    Assumptions & limitations

    • Fixed rate for the whole term.
    • Coverage is measured on cash flow, not profit.

    Frequently asked questions

    Why does the lender care about DSCR?

    It measures how much cushion there is before a payment is missed; 1.25x is the usual floor.

    Is the payment the whole cost?

    No — fees, guarantees and insurance sit on top.

    Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.