Business Loan Calculator
Calculate business loan payments for term loans, SBA loans, and lines of credit. Includes DSCR, LTV, effective rate with fees, and total cost.
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Monthly Payment
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Total Interest —
Total Cost —
Extended More scenarios, charts & detailed breakdown ▾
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Monthly Payment
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Total Interest —
Total Repayment —
Professional Full parameters & maximum detail ▾
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Payment & Rates
Monthly Payment —
Effective Rate (with fees) —
Fees & Total Cost
Origination Fee —
Total Upfront Fees —
Total Interest —
Total Cost (incl. fees) —
Risk Metrics
LTV % (loan-to-collateral) —
DSCR (Debt Service Coverage) —
DSCR Status —
How to Use This Calculator
- Enter your loan amount, interest rate, and term.
- Select loan type: Term Loan, SBA Loan, or Line of Credit.
- Use the Professional tier to add fees, calculate DSCR, and find your true effective rate.
Formula
Monthly Payment = P × r(1+r)^n / ((1+r)^n − 1)
DSCR = Net Operating Income ÷ Annual Debt Service
LTV = Loan Amount ÷ Collateral Value × 100
Example
Example: $250K SBA loan at 8.5% for 10 years → Monthly payment $3,098, Total Interest $121,760, SBA fee (2.5%) $6,250. DSCR with $180K NOI = 4.85 (strong).
Frequently Asked Questions
- DSCR (Debt Service Coverage Ratio) = Net Operating Income ÷ Annual Debt Payments. Lenders require ≥1.25 for most business loans. Below 1.0 means the business cannot cover its debt from cash flow.
- The SBA charges a guarantee fee (0–3.5% of the guaranteed loan portion) to fund the program. Loans under $150K are currently fee-exempt. The fee is typically financed into the loan.
- The effective rate accounts for upfront fees (origination, closing costs). Because fees reduce net proceeds, your true cost of borrowing is higher than the stated APR.
- A term loan provides a lump sum with fixed payments. A line of credit lets you borrow up to a limit, pay interest only on what you draw, and repay and reborrow as needed.
- Most commercial lenders require LTV ≤ 80% (collateral worth at least 125% of the loan). SBA 7(a) loans may go higher with the SBA guarantee backing the difference.