How the Business Loan Calculator works
Lenders judge a business loan on whether operating cash flow comfortably covers debt service. Calculate the payment first, then check it against your slowest month — not your average month.
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (APR ÷ 12) and n is the number of monthly payments.