Affordability Results
These estimates appear after you calculate. They are displayed above the form for quick review and export.
Loan Affordability Inputs
Use operating cash flow, repayment rules, and reserve targets to estimate a safer borrowing limit for your business.
The page stays in a single stacked layout, while the calculator fields adapt to three columns on large screens, two on smaller screens, and one on mobile.
Example Data Table
These sample scenarios show how different business profiles can support different monthly payments and borrowing limits.
| Scenario | Monthly Revenue | Gross Margin | Fixed Costs | Existing Debt | Rate | Term | Affordable Payment | Estimated Loan |
|---|---|---|---|---|---|---|---|---|
| Retail Expansion | $95,000 | 42% | $21,000 | $3,200 | 11.5% | 60 mo | $10,240 | $461,200 |
| Service Business Upgrade | $68,000 | 58% | $18,000 | $1,500 | 10.2% | 48 mo | $7,850 | $311,900 |
| Warehouse Equipment | $125,000 | 36% | $29,500 | $4,800 | 12.0% | 72 mo | $9,700 | $485,500 |
Formula Used
The calculator blends cash flow strength, reserve protection, and loan math to estimate a practical borrowing ceiling.
Gross Profit = Monthly Revenue × Gross Margin
Operating Profit = Gross Profit − Fixed Operating Costs − Owner Draw
Tax Reserve Amount = max(Operating Profit, 0) × Tax Reserve %
Cash Flow After Fixed Charges = Operating Profit − Tax Reserve Amount − Existing Debt Payments
Max Affordable Payment = Cash Flow After Fixed Charges ÷ Minimum DSCR
Monthly Rate = Annual Rate ÷ 12
Affordable Principal = Payment × [1 − (1 + Monthly Rate)−n] ÷ Monthly Rate
Net Proceeds = Affordable Principal × (1 − Origination Fee %)
Required Buffer = Reserve Months × (Fixed Operating Costs + Owner Draw + Existing Debt + New Loan Payment)
How to Use This Calculator
Follow these steps to build a more realistic affordability view before you discuss funding with a lender.
- Enter your average monthly revenue and gross margin based on recent performance, not best-case months.
- Add fixed operating costs, owner draw, and existing debt payments to reflect real monthly obligations.
- Set a tax reserve and a minimum DSCR target that matches your internal lending discipline or lender policy.
- Enter available cash, reserve months, rate, term, and any origination fee expected in the loan offer.
- Optionally add a requested loan amount to check whether that specific borrowing goal appears comfortable, watch, or tight.
- Click the calculate button to display results above the form, inspect the chart, and review the amortization preview.
- Use the CSV or PDF buttons to export the summary and schedule for internal review, lender preparation, or scenario comparison.
Frequently Asked Questions
1) What does this calculator estimate?
It estimates how much debt your business can support using monthly cash flow, a DSCR target, reserve goals, rate assumptions, and current debt obligations.
2) Why is DSCR important?
DSCR measures how comfortably cash flow covers debt service. A higher target builds more safety and usually reduces the loan amount the calculator will recommend.
3) Should I use average or peak revenue?
Use a realistic recent average. Peak months can overstate repayment capacity and make the affordability result look stronger than your normal operating pattern supports.
4) Why does the reserve setting matter?
Reserves show whether you can keep a cash cushion after borrowing. Strong payment coverage alone may not be enough if post-loan liquidity becomes too thin.
5) Does the calculator include origination fees?
Yes. It reduces net proceeds using the fee percentage so you can compare gross principal against the actual usable funds you may receive.
6) What if my rate changes later?
The stress rate uplift helps test that risk. It shows how payment pressure rises if pricing becomes less favorable than your base assumption.
7) Can I check a specific loan request?
Yes. Enter a requested amount and the calculator will compare its payment and reserve effect with your available cash flow and target safeguards.
8) Is this a lender approval result?
No. It is a planning estimate. Lenders may also review tax returns, collateral, industry risk, credit history, seasonality, and covenant preferences.