Business Loan Calculator
Calculate business-loan payment, net proceeds after origination fee, payoff time, interest savings and cash-flow coverage ratio.
- Separates face amount from net cash received
- Simulates extra-payment payoff and interest savings
- Shows a simple monthly cash-flow coverage ratio
Calculator workspace
Change any assumption and recalculate. Your entries stay in this browser unless you choose to share or copy a result.
What this Business Loan Calculator calculates
Business borrowing should be evaluated from both a financing-cost perspective and a cash-flow perspective. This calculator shows the normal monthly payment, adjusts the amount actually received for an origination fee, simulates optional extra principal, and compares the entered monthly cash available for debt service with the actual payment. That adds operating context to a basic loan payment.
The result is intentionally more than a single number. Supporting figures are shown beside the headline answer so you can see which part of the calculation is driving the outcome. This makes the tool useful for scenario testing: change one assumption, calculate again, and compare the supporting values rather than relying on a black-box result.
Formula and calculation method
Fixed-rate amortization plus origination-fee net proceeds, optional extra-principal simulation and cash available ÷ payment coverage.
Inputs are validated before calculation and the arithmetic runs locally in the browser. Monetary fields use the selected currency only for display formatting. The calculator does not retrieve bank, payroll, property, medical, market or exchange-rate data from an external service.
How to use it
- Enter values that describe the same scenario and reporting period.
- Keep percentages and units consistent with the labels shown beside each input.
- Select Calculate and review both the headline result and the supporting metrics.
- Change one assumption at a time to understand sensitivity instead of accepting a single scenario.
- Use Copy Result, Share Result or Save Result Image when you need to keep a record of the calculation.
Worked example
For a 100,000 loan at 9.5% over 60 months with a 2% origination fee, the business receives less than the face amount while still repaying the full principal. Enter an extra 250 per month and 4,500 of monthly cash available for debt service to compare payment, payoff time, interest and coverage.
How to interpret the result
A coverage ratio above 1 means the entered monthly cash amount exceeds the modeled payment, but it is not the same as a lender’s formal DSCR calculation. Formal underwriting may use EBITDA, net operating income, tax-return adjustments, global cash flow, existing debt, seasonal patterns and other definitions. Use a conservative cash figure rather than the best month in the year.
For an important decision, compare the output with original documents, lender or employer terms, supplier information, professional guidance, or other authoritative records relevant to the calculation. Small differences in rates, timing, fees and definitions can materially change a result even when the formula itself is correct.
Important assumptions and limitations
The calculator assumes a fixed interest rate, monthly payments, a percentage origination fee and no balloon. It does not include variable rates, prepayment penalties, daily interest, closing costs other than the entered fee, irregular draws, revenue-based repayment, merchant-cash-advance structures, or tax effects.
This calculator is for planning, checking, education and general informational use. It is designed to make assumptions visible and calculations reproducible, but it does not replace a contract, disclosure, professional opinion, medical assessment, accounting policy or lending decision.
Frequently asked questions
What does net funds received mean?
It is the loan face amount minus the entered origination fee; the scheduled payment is still based on the full loan amount.
Is the coverage ratio a formal DSCR?
No. It is a simple monthly cash-available-to-payment ratio for planning.
How are extra payments handled?
The calculator assumes the extra amount is applied to principal each month after interest accrues.