Qualify & plan
How much can my business borrow?
An estimated range your cash flow could support, using the same debt-service coverage test many lenders run first.
How this is calculated
Payment capacity = (revenue − costs) ÷ DSCR − existing payments
Loan amount = the amount whose monthly payment at your rate and term equals that capacity, at a DSCR of 1.50 (cautious) and 1.25 (a common lender benchmark). The estimate never goes above one year of revenue, and the range is rounded down to the nearest $100.
Worked example
$85,000 of revenue minus $68,000 of costs leaves $17,000 a month. $17,000 ÷ 1.25 − $3,000 of existing payments = $10,600 a month (or $8,333 at 1.50). At 12% over 3 years those payments support $319,139 (or $250,896), so the range is $250,800 – $319,100.
Assumptions
- Monthly figures. Operating costs exclude loan payments but include owner pay.
- The new loan has a fixed rate and equal monthly payments.
- Credit, time in business, industry and collateral are not included — lenders weigh all of them.
Questions owners ask
Is this how much I will be approved for?
No. It is a planning estimate from cash flow alone. Lenders also look at credit, time in business, industry, collateral and documents, and set their own limits.
What is DSCR?
The debt-service coverage ratio: cash available for debt divided by debt payments. A DSCR of 1.25 means $1.25 of cash for every $1 of payments.
How can I raise the estimate?
Higher, steadier cash flow, paying down existing debt, or a longer term or lower rate all increase the amount a payment can support.
Read before you borrow
Guides behind the numbers.
01How much business loan can I get?
Estimate business borrowing capacity using revenue, cash flow, debt service, collateral and use of funds—without relying on misleading loan calculators.
Read the guide ↗
02Business loan requirements: the complete readiness checklist
Understand common business loan requirements, documents, credit and cash-flow signals lenders review, plus a step-by-step application checklist.
Read the guide ↗
03SBA loan application checklist: build a lender-ready file
Use this SBA loan application checklist to organize eligibility, financials, ownership, collateral and transaction documents before contacting lenders.
Read the guide ↗Calculators give estimates for educational purposes only. They are not an offer, approval or commitment to lend. Actual rates, fees, terms and payments are set by independent providers and depend on their review. ScaleKit Financing is operated by Arch Ventures LLC and is not a lender.