Commercial Loan Calculator

Use this business loan calculator to estimate your debt service coverage with a new business loan. If your debt service coverage is greater than 1.25, including your new loan payment, you have a good chance of being approved.

This Financial Calculator requires SUN's JavaT Plug-in. If you see this message you will need to download SUN's JavaT Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing "Install ActiveX Control".

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For more information about this Plug-in please visit: SUN's JavaT Plug-in
For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions

Loan amount: Total amount of your loan.
Amortization: Payment period in years.
Interest rate: Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.
New monthly payment: Monthly payment for this loan.
Annual Verifiable net income: Your annual net income from IRS tax returns or other financial statements.
Annual depreciation expense: Since depreciation reduces your net income, but not your cash flow, we add back depreciation in calculating your total net cash income.
Other non-cash charges: Like depreciation, these are other non-cash charges to your net income that should be added back to calculate your total net cash income for the year.
Real estate mortgage: Your monthly payment for any real estate mortgages.
Business line of credit: Your monthly payment for any business lines of credit.
Auto loans: Your monthly payment for any auto loans.
Credit cards: Your monthly payment for any credit cards.
Other loans: Your monthly payment for any other outstanding loans.
Monthly debt payments eliminated: Enter the amount, if any, of the monthly obligations you entered above that will be paid off by this new loan.
Debt Service Coverage (DSC): The Debt Service Coverage (DSC) is determined by dividing the total annual net cash income by the total annual debt service. If you have a DSC of 1.25 or higher, there is a good chance that you will be approved for your loan.

Business Loan Calculator – The Easiest Way to Take the Right Decision About Your Business Finance

If you want to know the estimated cost needed to raise finance for your business, you can do it easily and most effectively by using a business loan calculator. This is your best tool to simplify the task of otherwise complex comparison-shopping. For example, you can use this fast and easy calculator to find out the maximum amount that you can afford to borrow as a secured loan, based on your financial ability to make the repayments. You can also find out the amount of monthly installments that you will have to repay if you borrow a certain amount of money at a certain interest rate.

Make an Informed Decision and Watch Your Business Grow

You can also use this business loan calculator to highlight the impact of monthly fees over a certain period of time, such as 3 years, 5 years, 7 years, 10 years, and so on. Overall, this tool will help you get a detailed overview of the different options available to you for business finance. It will also give you a snapshot of the possibilities with the loan you are planning to borrow.

With the right figures, you will be in a much better position to make an informed decision. For example, the business loan calculator will help you decide whether you should refinance or not, how much income is needed to qualify for a specific loan offer, how much you can afford to borrow based on your repayment abilities, how much you will have to repay every month if you borrow a certain amount of money at a certain rate of interest, and an array of other such things.

There are no charges, no catches, and no obligation to use this business loan calculator. This is a completely free service. So, feel free to use it whenever and as often as you want. Just plug-in your numbers in this calculator and click on the ‘calculate’ button – you will get the result in a flash.