Free tool
Business loan payment calculator
See what a small business loan would cost you each month, and whether your cash flow covers it. Free, no sign-up.
Monthly payment
$3,041
Total interest
$32,488
Total repaid
$182,488
Estimates only, with equal monthly payments. Your lender’s rate, fees and terms will differ. Not sure what to enter? See cash flow and typical business loan terms.
Can you afford the payment? That's the first thing a lender asks
Lenders call it capacity: does the business bring in enough cash, after its other bills and debts, to make the new payment with room to spare? A common yardstick is the debt service coverage ratio, the cash available for debt payments divided by the payments themselves.
Many lenders like to see about 1.25 times coverage or better, though each sets its own standard. Read more in the 5 Cs of credit.
The payment is only one part of the answer
A loan that fits your cash flow can still be declined. Lenders also weigh your credit history, how much of your own money is going in, your experience in the industry, and what you and the business own and owe.
What the full Loan Ready check adds
- Your credit score range against common lender cut-offs
- Your equity (down payment) as a share of the project
- Your industry experience
- Personal net worth and business tangible net worth
Common questions
How is the monthly payment calculated?
The calculator assumes a standard term loan with equal monthly payments of principal and interest over the term you enter. Lines of credit, interest-only periods and seasonal payments work differently.
What interest rate should I use?
Use a rate your bank or credit union has quoted, or a rate a few points above the current prime rate as a rough guide. Rates depend on the lender, your risk profile and the loan type.
What is a good debt service coverage ratio?
Many lenders look for at least 1.25, meaning the business has $1.25 of cash available for every $1.00 of loan payments. Below 1.0 means the payments aren't covered.
Free 1-minute readiness quiz · Pricing · CSBFP loan requirements