How is the maximum loan amount calculated?

The calculator uses reverse amortization. Given your monthly payment budget, interest rate, and loan term, it solves for the largest principal that would produce that payment. The formula is P = M x [(1+r)^n - 1] / [r(1+r)^n].

How does the interest rate affect how much I can borrow?

Lower rates significantly increase borrowing power. At $5,000/month over 3 years, 10% lets you borrow roughly $156,000 while 20% limits you to about $136,500. Better credit qualifies you for lower rates, expanding your options.

How does loan term affect my borrowing capacity?

Longer terms increase maximum loan amount because payments are spread over more months. However, total interest paid is higher. A $3,000 monthly payment at 12% supports about $60,000 over 2 years or $125,000 over 5 years, but the longer term costs more in interest.

What should I do if I need more than I can afford?

Options include extending the term, improving credit for better rates, phasing financing over time, or exploring equipment financing or asset-based lending. A funding specialist can help identify the best approach for your situation.

Loan Affordability Calculator

This calculator works backward from your monthly payment budget to show your maximum borrowing power. Enter what you can afford to pay, your expected rate, and desired term to see how much you could borrow. Includes term and rate comparisons plus an optional cash flow check.

100% FreeNo SignupInstant Results

Enter what your business can comfortably pay each month to see how much you could borrow. Adjust the rate and term to compare scenarios.

All results update in real time as you move the sliders or type new values.

Monthly Payment Budget

$100$50,000

What can your business comfortably pay each month toward a loan?

Expected Interest Rate: 12%

3%35%

Online lenders: 10-35% | Banks: 7-15% | SBA: 6-10%

Loan Term

Longer terms = larger loan amount, but more total interest

Based on your budget, you could borrow up to

$90,323

with a $3,000/mo payment at 12% over 3 years

Total Repayment

$108,000

Total Interest

$17,677

Interest as % of Loan

19.6%

How Loan Term Affects Your Max Loan

Term	Max Loan	Total Interest	Total Cost
1 year	$33,765	$2,235	$36,000
2 years	$63,730	$8,270	$72,000
3 yearsSelected	$90,323	$17,677	$108,000
4 years	$113,922	$30,078	$144,000
5 years	$134,865	$45,135	$180,000
7 years	$169,945	$82,055	$252,000
10 years	$209,102	$150,898	$360,000

Longer terms let you borrow more, but cost more in total interest.

How Interest Rate Affects Your Borrowing Power

If you qualify for 7%

$97,159

At your estimated 12%

$90,323

If rates are 17%

$84,145

Better credit typically qualifies you for lower rates, which means more borrowing power.

See if you qualify for up to $90,323

No impact to your credit score.

Check Your Options

How Much Business Loan Can You Afford?

Most loan calculators answer the question "what will my payment be?" This one flips it: given what you can comfortably pay each month, how much can you borrow? The answer depends on three factors: your monthly payment budget, the interest rate you qualify for, and how long you want to repay.

The math behind this calculator is reverse amortization. A standard loan payment calculator takes a loan amount and computes the payment. This tool takes your payment and computes the maximum principal. The formula accounts for how each payment splits between interest and principal over the full term.

The Payment-to-Revenue Rule

A common guideline: keep loan payments under 10% to 15% of monthly revenue. This leaves room for operating expenses, unexpected costs, and profit. A business earning $30,000 per month might comfortably afford $3,000 to $4,500 in monthly loan payments. This is not a hard rule. Businesses with high margins can handle more, while seasonal businesses may need a lower ratio.

How Interest Rate Affects Borrowing Power

Lower rates dramatically increase how much you can borrow at the same payment. At $5,000 per month over 3 years, a 10% rate supports roughly $156,000 in borrowing, while 20% limits you to about $136,500. That is a $19,500 difference from rate alone. This is why improving your credit before applying can meaningfully expand your options on term loans and lines of credit.

What If You Need More Than You Can Afford?

If the calculator shows a smaller number than you need, you have options. Extend the term to increase capacity (more interest, but higher borrowing power). Improve your credit to qualify for lower rates. Phase your financing by borrowing now and adding later. Or explore equipment financing where the asset serves as collateral, or asset-based lending for larger amounts secured by business assets. Check your Debt Service Coverage Ratio to see how lenders will view your overall debt capacity.

How It Works

Set Your Budget

Enter the monthly payment your business can comfortably handle. Use presets or type any amount.

Choose Rate & Term

Select your expected interest rate and desired repayment term. The calculator shows your max loan in real time.

Compare Scenarios

Explore how different terms and rates change your borrowing power. Add your revenue for a cash flow check.

What You Get

Maximum Loan Amount

The largest loan your business can take on based on what you can afford to pay each month.

Total Cost Breakdown

Total repayment, total interest paid, and interest as a percentage of the loan amount.

Term Comparison Table

See how choosing a shorter or longer term changes your max loan, total interest, and total cost side by side.

Rate Impact Analysis

Compare borrowing power at different interest rates to understand what better credit could unlock.

Cash Flow Check

Add your monthly revenue to see your payment as a percentage of income, with a clear assessment of whether it fits.

Personalized CTA

A direct link to see if you qualify for the calculated amount, with no impact to your credit score.