Business Loan Eligibility & Debt Capacity Calculator
Calculate your maximum commercial business loan eligibility based on annual business revenue, net profit, and DSCR coverage limits.
What this calculator does
The Business Loan Eligibility & Debt Capacity Calculator estimates your result instantly from the values you enter, using standard business & finance formulas. Calculate your maximum commercial business loan eligibility based on annual business revenue, net profit, and DSCR coverage limits. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About Business Loan Eligibility & Debt Capacity Calculator
The Business Loan Eligibility Calculator evaluates your company's borrowing capacity by assessing annual revenue, cash flow profitability, and lender minimum Debt Service Coverage Ratio (DSCR 1.25x).
Formula & Mathematical Calculation
Max Allowable Annual Debt Service = Net Operating Cash Flow / Target DSCR (e.g. 1.25)
Max Eligible Business Loan = Max Monthly Debt Service × [ (1 + r)^n - 1 ] / [ r(1 + r)^n ]
Calculation Example
$800k Revenue ($150k Net Operating Cash Flow, 1.25 DSCR @ 9.0% for 7 Yrs): Max Annual Debt Service = $120k ($10,000/mo). Max Eligible Business Loan = $621,480.00.
Key Benefits
- Calculates maximum commercial borrowing power based on cash flow
- Enforces bank DSCR underwriting standards (1.20x to 1.35x)
- Works for SBA 7(a), working capital lines, and term loans
- Helps founders prepare loan applications before speaking to bankers
- Professional underwriting tool
How to Use this Calculator
-
Enter Annual Gross Business Revenue
Input total yearly business sales. -
Enter Net Operating Cash Flow (EBITDA)
Input operating cash profit before debt payments. -
Select Desired Loan Term & Rate
Choose term in years and expected commercial APR. -
Calculate Eligibility
Click Calculate to view maximum business loan qualification.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Business Loan Eligibility & Debt Capacity Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
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Next step: browse the full Business & Finance calculators or read the related guides for context before you decide.