How the business loan calculator works
Enter the loan amount, interest rate, term in months, origination fee and your annual revenue. The calculator gives the fixed monthly payment, the fee, total interest and total cost, then compares the payment with your monthly revenue.
The formula
Monthly payment M = P × r(1+r)^n / ((1+r)^n − 1); payment-to-revenue = M ÷ (annual revenue/12); coverage = (annual revenue/12) ÷ M.
The coverage figure here uses revenue. A lender’s debt service coverage ratio (DSCR) uses net operating income, which is lower — so a lender’s number will be lower than this one.
Frequently asked questions
What is DSCR?
Debt service coverage ratio — how many times your income covers your loan payments. Lenders calculate it from net operating income; this calculator uses revenue as a quick first look, so treat it as an upper bound.
How is total cost calculated?
Every monthly payment added together, plus the origination fee.
What payment-to-revenue ratio is healthy?
It depends on your margins. The lower the share of revenue a payment takes, the more room the business has.
Results are estimates for planning, not financial advice. Last reviewed 2026-09-28.