Business Loan Affordability Calculator
ANA›Life Services Authority›National Calculator Authority›Business Loan Affordability Calculator
.calc-container { max-width: 640px; margin: 2rem 0; padding: 1.5rem; background: #fff; border: 1px solid #ddd; border-radius: 8px; box-shadow: 0 1px 3px rgba(0,0,0,0.06); font-family: system-ui, -apple-system, sans-serif; } .calc-container h3 { font-family: Georgia, serif; font-size: 1.15rem; color: #1a1a1a; margin-bottom: 1rem; padding-bottom: 0.5rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-row { display: flex; align-items: center; gap: 0.75rem; margin-bottom: 0.75rem; flex-wrap: wrap; } .calc-row label { min-width: 160px; font-size: 0.9rem; color: #333; font-weight: 500; } .calc-row input[type="number"], .calc-row select { flex: 1; min-width: 120px; max-width: 200px; padding: 0.5rem 0.6rem; border: 1px solid #ccc; border-radius: 4px; font-size: 0.9rem; font-family: system-ui, sans-serif; color: #1a1a1a; background: #fafaf8; } .calc-row input:focus, .calc-row select:focus { outline: none; border-color: var(--ac, #3d5a80); box-shadow: 0 0 0 2px rgba(26,74,138,0.12); } .calc-row .unit { font-size: 0.82rem; color: #888; min-width: 30px; } .calc-btn { display: inline-block; margin-top: 0.5rem; padding: 0.55rem 1.5rem; background: var(--ac, #3d5a80); color: #fff; border: none; border-radius: 4px; font-size: 0.9rem; font-weight: 600; cursor: pointer; font-family: system-ui, sans-serif; } .calc-btn:hover { opacity: 0.9; } .calc-result { margin-top: 1.25rem; padding: 1rem 1.25rem; background: #f0f6fc; border-left: 3px solid var(--ac, #3d5a80); border-radius: 0 6px 6px 0; display: none; } .calc-result.visible { display: block; } .calc-result-label { font-size: 0.78rem; text-transform: uppercase; letter-spacing: 0.06em; color: #666; margin-bottom: 0.25rem; } .calc-result-value { font-size: 1.6rem; font-weight: 700; color: var(--ac, #3d5a80); } .calc-result-detail { font-size: 0.85rem; color: #555; margin-top: 0.5rem; line-height: 1.5; } .calc-note { margin-top: 1rem; font-size: 0.8rem; color: #888; font-style: italic; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 0.75rem; margin-top: 0.75rem; } .calc-grid-item { padding: 0.6rem 0.8rem; background: #f8f9fa; border-radius: 4px; border: 1px solid #eee; } .calc-grid-item .label { font-size: 0.75rem; color: #888; text-transform: uppercase; letter-spacing: 0.04em; } .calc-grid-item .value { font-size: 1.1rem; font-weight: 600; color: #1a1a1a; } @media (max-width: 720px) { .calc-row { flex-direction: column; align-items: flex-start; gap: 0.3rem; } .calc-row label { min-width: auto; } .calc-row input[type="number"], .calc-row select { max-width: 100%; width: 100%; } .calc-grid { grid-template-columns: 1fr; } } .calc-chart { margin: 1rem 0; text-align: center; } .calc-chart svg { max-width: 100%; height: auto; } .calc-chart-legend { display: flex; flex-wrap: wrap; justify-content: center; gap: 0.6rem 1.2rem; margin-top: 0.6rem; font-size: 0.8rem; color: #555; } .calc-chart-legend span { display: inline-flex; align-items: center; gap: 0.3rem; } .calc-chart-legend i { display: inline-block; width: 10px; height: 10px; border-radius: 2px; font-style: normal; } .calc-related { max-width: 640px; margin: 2rem 0 1rem; padding: 1.25rem 1.5rem; background: #f8f9fa; border: 1px solid #e8e8e8; border-radius: 8px; } .calc-related h3 { font-family: Georgia, serif; font-size: 1rem; color: #1a1a1a; margin: 0 0 0.75rem; padding-bottom: 0.4rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-related-list { list-style: none; padding: 0; margin: 0 0 0.75rem; display: grid; grid-template-columns: 1fr 1fr; gap: 0.4rem 1.5rem; } .calc-related-list li a { font-size: 0.88rem; color: var(--ac, #3d5a80); text-decoration: none; } .calc-related-list li a:hover { text-decoration: underline; } .calc-browse-all { margin: 0.5rem 0 0; font-size: 0.9rem; font-weight: 600; } .calc-browse-all a { color: var(--ac, #3d5a80); text-decoration: none; } .calc-browse-all a:hover { text-decoration: underline; } @media (max-width: 720px) { .calc-related-list { grid-template-columns: 1fr; } }
Business Loan Affordability Calculator
Estimate the maximum business loan you can afford based on your monthly revenue, operating expenses, existing debt obligations, and lender requirements.
Gross Monthly Revenue ($)
Monthly Operating Expenses ($)
Existing Monthly Debt Payments ($)
Annual Interest Rate (%)
Loan Term (months)
Required Debt Service Coverage Ratio (DSCR)
Lenders typically require 1.25 – 1.50. Default: 1.25
Calculate
function busCalc() { var resultDiv = document.getElementById('bus-result');
var revenue = parseFloat(document.getElementById('bus-monthly-revenue').value); var expenses = parseFloat(document.getElementById('bus-monthly-expenses').value); var existing = parseFloat(document.getElementById('bus-existing-debt').value); var annRate = parseFloat(document.getElementById('bus-interest-rate').value); var term = parseFloat(document.getElementById('bus-loan-term').value); var dscr = parseFloat(document.getElementById('bus-dscr').value);
// --- Validation --- if (isNaN(revenue) || revenue = 100) { resultDiv.innerHTML = 'Please enter a valid annual interest rate between 0.1% and 99.99%.
'; return; } if (isNaN(term) || term 360 || !Number.isInteger(term)) { resultDiv.innerHTML = 'Please enter a valid loan term between 1 and 360 months (whole number).
'; return; } if (isNaN(dscr) || dscr = revenue) { resultDiv.innerHTML = 'Monthly operating expenses must be less than gross monthly revenue to have positive net operating income.
'; return; }
// --- Core Calculations ---
// Net Operating Income (NOI) = Revenue - Operating Expenses var noi = revenue - expenses;
// Maximum allowable total monthly debt service = NOI / DSCR var maxTotalDebtService = noi / dscr;
// Maximum new monthly payment = maxTotalDebtService - existing debt var maxNewPayment = maxTotalDebtService - existing;
if (maxNewPayment ' + 'Net Operating Income (Monthly)$' + fmt(noi) + '' + 'Max Total Monthly Debt Service (NOI / DSCR)$' + fmt(maxTotalDebtService) + '' + 'Existing Monthly Debt Payments$' + fmt(existing) + '' + 'Max Affordable New Monthly Payment$' + fmt(maxNewPayment) + '' + 'Maximum Loan Amount You Can Afford$' + fmt(maxLoanAmount) + '' + 'Total Repayment Over Loan Term$' + fmt(totalRepayment) + '' + 'Total Interest Paid$' + fmt(totalInterest) + '' + 'Effective Annual Rate (EAR)' + ear.toFixed(4) + '%' + 'Debt-to-Revenue Ratio (New Payment)' + dti.toFixed(2) + '%' + 'Loan Term' + term + ' months (' + (term/12).toFixed(1) + ' years)' + '' + 'Based on a DSCR of ' + dscr.toFixed(2) + ' and an annual interest rate of ' + annRate + '%.
'; }
#### Formulas Used
1. Net Operating Income (NOI): NOI = Gross Monthly Revenue − Monthly Operating Expenses
2. Maximum Total Monthly Debt Service: Max Debt Service = NOI ÷ DSCR
3. Maximum New Monthly Payment: Max New Payment = Max Debt Service − Existing Monthly Debt Payments
4. Maximum Loan Amount (Present Value of Annuity): P = PMT × [1 − (1 + r)−n] ÷ r Where: PMT = Max New Monthly Payment, r = Monthly Interest Rate (Annual Rate ÷ 12), n = Loan Term in Months
5. Effective Annual Rate (EAR): EAR = (1 + r)12 − 1
6. Debt-to-Revenue Ratio: DTI = (New Monthly Payment ÷ Gross Monthly Revenue) × 100
#### Assumptions & References
- The Debt Service Coverage Ratio (DSCR) is the primary metric lenders use to assess business loan affordability. Most lenders require a minimum DSCR of 1.25, meaning NOI must be 25% greater than total debt payments. (SBA guidelines, commercial lending standards)
- Operating expenses should include all recurring costs (rent, payroll, utilities, COGS, insurance) but exclude existing loan payments, which are entered separately.
- The loan payment formula assumes a fixed-rate, fully amortizing loan with equal monthly payments (standard amortization).
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