Business Loan Calculator

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Loan Details

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Interest Rate (APR) ? %
Loan Term ?  
Loan Type ?  
Down Payment ?  

Business Information

Monthly Revenue ? /month
Monthly Expenses ? /month
Existing Debt Payments ? /month
Business Age ?  
Credit Score ?  

Additional Costs

Origination Fee ? %
Processing Fees ?  
Annual Maintenance Fee ? /year
 

Monthly Payment:   $4,987

  Amount Details
Loan Summary Value Calculation
Loan Amount $250,000 Principal amount
Down Payment $50,000 20% of loan
Interest Rate 7.5% Annual percentage rate
Loan Term 5 years 60 months
Monthly Payment $4,987 Principal + Interest
84% 16% Principal ($250K) Interest ($49K)
Total Cost Analysis Amount Details
Total Interest $49,220 Over loan term
Origination Fee $6,250 2.5% of loan amount
Processing Fees $1,500 One-time cost
Maintenance Fees $2,500 $500/year × 5 years
Total Loan Cost $309,470 All costs included
Cash Flow Impact Monthly Assessment
Monthly Revenue $75,000 Business income
Monthly Expenses $55,000 Operating costs
Existing Debt $8,000 Current obligations
Net Cash Flow (Before Loan) $12,000 Available for loan
New Loan Payment $4,987 Monthly obligation
Net Cash Flow (After Loan) $7,013 Remaining cash flow
Financial Ratios Ratio Benchmark
Debt Service Coverage 2.41x > 1.25x
Payment to Revenue 6.6% < 15%
Total Debt to Revenue 17.3% < 25%
Cash Flow Cushion $7,013 > $5,000

Business Loan Analysis & Comparison

Monthly Cash Flow Analysis $75K Revenue $55K Expenses $8K Existing Debt $5K New Loan $0 $50K $100K Net: $7K/month

Loan Term Comparison
Term Monthly Payment Total Interest Total Cost
3 years $7,689 $26,804 $286,054
5 years $4,987 $49,220 $309,470
7 years $3,847 $73,156 $333,406
10 years $2,958 $104,960 $365,210

Loan Type Comparison

Loan Type Interest Rate Monthly Payment Pros/Cons
SBA Loan 7.5% $4,987 Lower rates, longer terms
Conventional 8.5% $5,123 Faster approval, higher rates
Equipment Financing 6.5% $4,798 Asset-backed, lower risk
Working Capital 12.0% $5,562 Flexible use, higher cost

Business Financial Health

Metric Current Value With Loan Assessment
Monthly Cash Flow $12,000 $7,013 Strong
Debt Service Coverage N/A 2.41x Excellent
Debt-to-Revenue Ratio 10.7% 17.3% Healthy
Interest Coverage N/A 3.9x Strong

Amortization Summary (First 12 Months)

Month Payment Principal Interest Balance
1 $4,987 $3,425 $1,562 $246,575
6 $4,987 $3,533 $1,454 $229,425
12 $4,987 $3,645 $1,342 $208,156
Year 1 Total $59,844 $41,844 $18,000 $208,156

Business Loan Recommendations

💼 Excellent Business Loan Position
Your business shows strong financial health with a debt service coverage ratio of 2.41x, well above the 1.25x minimum requirement. The monthly payment of $4,987 represents only 6.6% of your revenue, leaving substantial cash flow cushion of $7,013 per month. Your SBA loan terms are favorable with competitive rates. Consider the 5-year term as it balances manageable payments with reasonable total interest costs.

Important Business Loan Considerations:

  • Maintain debt service coverage ratio above 1.25x for healthy cash flow
  • SBA loans typically offer better terms but longer approval processes
  • Consider seasonal business fluctuations in cash flow planning
  • Factor in loan fees and closing costs when comparing options
  • Build relationships with multiple lenders for future financing needs
  • Keep detailed financial records to support loan applications