Business Loan Calculator
Calculate monthly payments and total interest for business term loans. Plan financing for your small business expansion or startup.
Business Loan
Debt Service Coverage Ratio: 7.31x
Your business generates sufficient cash flow to comfortably cover this loan. Lenders typically require 1.25x or higher.
Loan Summary
Total Cost Breakdown
Amortization Schedule
| Year | Payment | Principal | Interest | Balance | Tax Savings |
|---|---|---|---|---|---|
| Year 1 | $2,052 | $1,343 | $708 | $98,657 | $177 |
| Year 1 | $2,052 | $1,452 | $600 | $83,237 | $150 |
| Year 2 | $2,052 | $1,580 | $472 | $64,992 | $118 |
| Year 3 | $2,052 | $1,720 | $332 | $45,135 | $83 |
| Year 4 | $2,052 | $1,872 | $180 | $23,523 | $45 |
| Year 5 | $2,052 | $2,037 | $14 | $0 | $4 |
Risk Assessment: Moderate to High Risk
Business Loan Best Practices
- Maintain DSCR ≥1.25: Lenders want to see your business generates 25%+ more than debt payments
- Cash reserves: Keep 3-6 months of operating expenses plus debt payments in reserve
- Use for growth: Loans should generate returns exceeding the cost of capital
- Track ROI: Monitor whether the loan investment delivers expected returns
- Consider SBA loans: Government-backed loans often have better terms than conventional loans
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