What this calculator helps you do
Estimate payment, borrowing cost, APR, and a simplified monthly debt-service coverage ratio for a business loan. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—business loan amount of $100,000, annual interest rate of 10.5%, term of 60 months, origination fees of $2,500, monthly cash available for debt service of $4,500—the calculator returns monthly loan payment of $2,149.39; estimated apr: 11.60%; total interest: $28,963.40. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
Use DSCR as an initial stress check only. Businesses should test lower cash flow and higher costs before relying on the base scenario.
Common mistakes to avoid
- Using revenue instead of cash available for debt service.
- Ignoring seasonal cash-flow variation.
- Comparing payment alone without fees and total cost.
Limits and assumptions
The DSCR is a simplified monthly ratio and not a lender-specific underwriting calculation.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
What cash flow should I enter?
Use a conservative estimate of monthly cash available to service this debt, not gross sales.
What does DSCR mean?
It compares entered monthly cash flow with the modeled monthly payment.
Are fees included in APR?
Yes, the educational APR estimate uses loan proceeds after the entered fees.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.