A loan is affordable only if the payment fits your profit with room to spare. Enter the loan and your monthly profit, and this shows the payment, the total interest, your profit after it, and how it holds up if business slows.
The loan
Your business
Planning estimate only — general information to help you think it through, not financial, tax, or legal advice. Your numbers stay in your browser.
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Don't just model a good month. Here's whether your profit still covers the payment if things tighten — a pass means the payment is still covered:
The tipping points around your result — so you know the conditions, not just the answer:
Monthly payment is the standard amortized loan payment for the amount, rate, and term. Total interest = payment × months − amount borrowed.
Debt-service coverage (DSCR) = operating profit ÷ total debt payments. Above 1.25× is comfortable, 1.0× means every dollar of profit is spoken for, below 1.0× means you can't cover the payments from profit alone. The stress test re-checks the payment against a weaker month.
A planning estimate — not financial advice. Actual approval and rates depend on credit, collateral, and the lender.
Check that the monthly payment leaves you clearly profitable and that your debt-service coverage — profit divided by total debt payments — is at least 1.25×. If the payment takes more than about a third of your monthly profit, or coverage is near 1×, the loan is risky even if you can technically make the payment.
Lenders typically want 1.25× or higher, meaning your profit is at least 125% of your total debt payments. That cushion covers a slow month. At 1.0× every dollar of profit goes to debt; below 1.0× you can't cover the payments from profit and the loan is unaffordable as-is.
Because a longer term lowers the monthly payment but raises the total interest you pay — sometimes dramatically. Seeing both lets you weigh an affordable monthly payment against the true lifetime cost of the loan, and decide whether a shorter term is worth the higher payment.
Last reviewed: September 2026. Free to use, no signup — a ToolWise Digital decision engine.
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