Business Loan Calculator
Monthly payment and total interest, plus the DSCR lenders actually underwrite against.
🔒 Runs entirely in your browser — nothing here is ever uploaded
About the Business Loan Calculator
Calculates a business term loan's monthly payment and total interest via standard amortization, plus its Debt-Service Coverage Ratio (DSCR) — the metric commercial lenders actually underwrite against.
- Enter the loan amount, APR, and term in months.
- Enter your business's annual net operating income (NOI).
- Read the monthly payment, total interest, and DSCR, flagged against a typical 1.25x lender minimum.
A $150,000 loan at 9.5% APR over 60 months: about $3,151/month. Against $62,000 annual NOI: a DSCR of about 1.64x.
| DSCR | Interpretation |
|---|---|
| Below 1.0 | Negative cash flow — NOI doesn't cover debt service |
| 1.0 - 1.25 | Positive but thin cushion — below most lenders' minimum |
| 1.25 - 1.5 | Commonly cited minimum most lenders require |
| 1.5+ | Comfortable cushion above debt obligations |
1.25x is a commonly cited minimum DSCR, though the real requirement varies by lender and loan type. This calculator covers only this one loan's debt service, not a business's total debt obligations.
- • DSCR below 1.25x is a common red flag for commercial lenders.
- • This tool's DSCR only reflects this one loan.
- • SBA-backed loans and conventional bank term loans commonly reference a similar DSCR range.
- U.S. Small Business Administration — SBA 7(a) loan program requirements — accessed 2026-08-30
- Re-Leased — Debt Service Coverage Ratio (DSCR) Explained — accessed 2026-09-01
Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.