401(k) Loan Calculator
Calculate 401(k) loan repayment, interest paid back to yourself, and the opportunity cost of lost market returns. See the true cost of borrowing from retirement.
Business Loan Calculator
Calculate business loan payments, total cost, DSCR, and affordability. Compare SBA, term, equipment, and line of credit options.
$
%
mo
%
$
$
Monthly Payment⧉
$3,268.80
Principal + interest
Total Interest⧉
$74,578.89
Over loan term
Origination Fee⧉
$6,000.00
3% of loan amount
Total Cost of Loan⧉
$280,578.89
Payments + fees
DSCR⧉
9.49
Good — meets typical lender minimum
Payment / Revenue⧉
6.5%
Healthy ratio
Affordability Check
0%33% targetRevenue
Yearly Paydown Schedule
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $21,130.00 | $18,096.00 | $178,870.00 |
| 2 | $23,227.00 | $15,999.00 | $155,643.00 |
| 3 | $25,532.00 | $13,693.00 | $130,111.00 |
| 4 | $28,066.00 | $11,159.00 | $102,045.00 |
| 5 | $30,852.00 | $8,374.00 | $71,193.00 |
| 6 | $33,914.00 | $5,312.00 | $37,279.00 |
| 7 | $37,279.00 | $1,946.00 | $0.00 |
Business Loan Type Reference
| Type | Rate Range | Max Term | Max Amount | Fees |
|---|---|---|---|---|
| SBA 7(a) | Negotiated | Up to program limits | Program-based | Program + lender fees |
| SBA 504 | Structure-dependent | Long-term | Project-based | Program + closing fees |
| Term Loan | Lender-set | Usually fixed term | Varies | Often origination or underwriting fees |
| Line of Credit | Usually variable | Revolving or renewable | Varies | May include draw or maintenance fees |
| Equipment | Asset and borrower dependent | Often tied to asset life | Often linked to equipment cost | Closing and documentation fees may apply |
| Invoice Factor | Advance/discount model | Short receivable cycle | Invoice-based | Advance and service fees |
Planning notes, formulas, and examples
About the Business Loan Calculator
A business loan calculator helps entrepreneurs and operators estimate the payment, fee load, and repayment burden of financing before they speak with a lender. Beyond the monthly payment, the more useful questions are how the new debt fits inside monthly revenue, how origination fees affect total borrowing cost, and whether a simplified coverage view still leaves room for payroll, inventory, and other operating obligations.
Business financing structures vary widely. Bank and SBA-backed term loans, equipment financing, revolving credit lines, and faster online products can all price and underwrite differently. Fees, collateral, repayment frequency, guaranty requirements, and lender-specific cash-flow definitions can matter just as much as the headline rate.
This calculator models the loan as an amortizing worksheet, then layers on a simplified affordability screen using user-entered revenue and existing debt. The results are useful for pre-application planning, side-by-side offer comparison, and rough payment sizing, but they do not replace lender underwriting or a formal debt-service analysis built from financial statements.
When This Page Helps
Use this to judge whether a loan fits your revenue and repayment capacity before you apply. It shows the monthly burden, total borrowing cost, and coverage ratios lenders care about so you can compare offers on equal footing.
How to Use the Inputs
- Enter the desired loan amount.
- Set the interest rate and loan term.
- Add the origination fee percentage.
- Choose the loan type for context.
- Enter your monthly business revenue and existing debt.
- Review DSCR and payment-to-revenue ratio.
- Check the yearly paydown schedule and loan type reference table.
Formula used
Monthly Payment M = P × [r(1+r)^n] / [(1+r)^n − 1]. Simplified coverage view = Annualized Revenue / Annualized Scheduled Debt Service. Payment-to-Revenue = Monthly Payment / Monthly Revenue × 100%.Example Calculation
Result: $3,282/mo — DSCR 15.24 — Payment is 6.6% of revenue — $75,694 total interest
A $200,000 loan at 9.5% for 7 years costs $3,282/month with $75,694 in total interest. The 3% origination fee adds $6,000 upfront. With no other monthly debt entered and $50,000 in monthly revenue, annual revenue is $600,000, so the worksheet coverage view is 15.24 and the payment uses 6.6% of monthly revenue.
Tips & Best Practices
- Compare total cost, fees, collateral requirements, and repayment structure instead of focusing only on the headline rate.
- Many lenders look for a coverage cushion above break-even, but the exact threshold and definition vary by product and underwriter.
- Use payment as a share of revenue as a rough stress check, then compare that result with your real fixed-cost base and cash-flow seasonality.
- Secured products such as equipment or asset-backed loans can be priced differently from unsecured loans because collateral changes the risk profile.
- Compare APR (including fees) rather than just interest rate when evaluating offers.
- Prepayment terms, guaranties, and reporting covenants can materially change the real cost of the loan even when the rate looks attractive.
Reading DSCR
DSCR compares annual revenue to annual debt service. A higher number means more room for the business to cover the new payment and any existing obligations.
Comparing Loan Types
SBA loans usually offer better terms but take longer and require more documentation. Short-term and online financing can be faster, but the payment and fee load can rise quickly. Use the results to compare payment, fees, and repayment term together rather than focusing on rate alone.
Sources & Methodology
Last updated:
Methodology
This page models a business term loan using the standard amortization formula, then layers on a simplified affordability screen based on the entered monthly revenue, existing debt, and origination fee assumptions. It reports the scheduled payment, total interest, total fee-adjusted borrowing cost, and a high-level debt-service coverage view built from annualized revenue and debt service.
The result is a pre-application worksheet, not an SBA eligibility decision or lender commitment. Real underwriting can use tax returns, cash-flow statements, collateral, guaranties, and lender-specific DSCR definitions that differ from this simplified planning model.
Sources
- 7(a) loans (U.S. Small Business Administration) — SBA overview of the 7(a) program, covered uses of proceeds, and general repayment structure for small-business borrowing.
- Terms, conditions, and eligibility (U.S. Small Business Administration) — SBA page describing negotiated rates, fee treatment, maturity rules, and repayment expectations for 7(a) loans.
Frequently Asked Questions
Debt service coverage is a way to compare incoming business cash with scheduled debt obligations. Lenders often build it from tax returns, financial statements, and their own definitions of debt service or add-backs. This page uses a simpler worksheet version based on entered revenue and debt payments.
There is no single best product. SBA-backed loans, bank term loans, equipment financing, revolving credit, and faster online products each trade off speed, documentation, collateral, pricing, and flexibility. The best fit depends on what the funds are for and how stable the business cash flow is.
The maximum amount depends on lender underwriting, collateral, historical cash flow, owner guarantees, industry risk, and the specific product. This calculator is best used to see whether the projected payment looks manageable before a formal application.
Yes, interest on business loans is generally tax-deductible as a business expense. This effectively reduces the true cost of borrowing. Consult a tax professional for your specific situation.
Credit requirements vary by lender and by whether the loan relies more on business performance, collateral, or personal guarantees. Stronger personal and business credit usually improves pricing and approval odds, but there is no universal cutoff that applies to every product.
Common charges include origination, packaging, underwriting, documentation, guaranty, late-payment, and prepayment fees. The best comparison is the lender’s full fee schedule plus the payment structure, not a single fee percentage pulled out of context.
More in this topic
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APR Calculator
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