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Loan payment and coverage calculator.
See the monthly payment on a business loan, and whether your earnings cover it with room to spare, the way a lender checks.
The loan
Your earnings and other debts
- Payments per year
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- Total interest over the term
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- Total repaid
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- Debt coverage today
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- Debt coverage with this loan
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Coverage (debt service coverage ratio) = EBITDA ÷ a year of payments on all debt. Many banks look for 1.25x or more; SBA 7(a) lenders for at least 1.15x on most loans and 1.25x on business acquisitions. Lenders also weigh collateral, credit and the business's history.
How lenders read coverage
Coverage answers one question: if the business keeps earning what it earned last year, how many times over could it make its loan payments? At 1.0x every dollar of earnings goes to the bank. Lenders want a cushion for a slow quarter, so most banks look for 1.25x. The SBA's 7(a) program has used a minimum of 1.15x for most loans; under SBA's updated rules (SOP 50 10 8.1, effective October 1, 2026), loans to buy a business are reported to need 1.25x from historical earnings.1
The earnings figure lenders use is usually EBITDA: net income with interest, taxes, depreciation and amortization added back. Many also let you add back one-time costs, like a legal settlement, or owner pay above a market salary, if you can show support for them.
Worked example
A $250,000 loan at 10.5% over 10 years costs about $3,373 a month, or $40,480 a year. With $4,000 a month of existing payments, total debt service is $88,480 a year. A business with $400,000 of EBITDA covers that 4.52 times, comfortably above what lenders look for.
1. FunderIntel, "SBA SOP 50 10 8.1: 7 things brokers need to know", reporting on the SOP; confirm the requirement for your loan with your lender.
Get your real coverage from your books.
Nori reads your QuickBooks or Xero books, finds interest, depreciation and taxes for you, lists your debts from the balance sheet, and shows coverage before and after the loan you want, then builds the lender package.
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