Business Loan Eligibility Estimator
Estimate a business loan's monthly payment, your debt service coverage ratio (DSCR), and a feasibility indication based on your net profit, existing debts, and desired amount. No data is sent to a server.
How it works
This tool calculates the monthly payment for the requested loan based on the amount, term and interest rate (constant principal amortization), then compares your total debt payments (existing + new loan) to your monthly net profit via the Debt Service Coverage Ratio (DSCR). It also provides a recommended maximum loan amount to target a DSCR of 1.25, a threshold commonly used as a benchmark by lenders.
What is a good DSCR ratio?
A DSCR of 1.0 means your profit just covers your debt payments, with no margin. Most lenders look for a DSCR of at least 1.25, which provides a safety buffer in case business slows. Below 1.0, the company isn't generating enough cash flow to repay its debts from current operations.
Does this result guarantee loan approval?
No. This is a simplified estimate based only on the numbers you enter. Banks and lenders also review your repayment history, available collateral, the strength of your industry, and other criteria not considered here. This result doesn't replace advice from an accountant, financial advisor, or your banker before any financing application.
The calculation happens entirely in your browser: no financial data you enter is transmitted to a server.