💼 Business Loan Affordability Calculator
Estimate EMI, DSCR, break-even, payback and view a
24-month cashflow projection.
Values auto-adapt to your inputs.
Select Your Business Type
Loan & Business Inputs
+₹37,500/mo
Extra money you expect to earn each month after investment
±₹15,000/mo
How much your monthly revenue goes up and down:
(max-min)/avg ×100
₹37,500/mo max
Maximum safe EMI based on your revenue stability & profit
margin
Annual Profit ÷ Annual EMI =
1.4×
Lenders want your annual profit to be 1.2–1.5× your annual
EMI
Time to reach expected revenue after launch
₹40,000/mo max
Conservative EMI limit for startups (recommended: 15-25%)
Annual Profit ÷ Annual EMI =
1.5×
Lenders typically require higher DSCR for startups (1.5-2.0)
💡 Tip
Values for "safe EMI" and "DSCR" are auto-suggested based on your revenue stability
(seasonality) and profit margin. You may override if you have lender constraints.
24-Month Cash Flow Projection (Before vs After Loan)
Financial Summary (After
Loan)
| Monthly Revenue | — |
| Monthly Expenses | — |
| Monthly Profit (NOI) | — |
| EMI | — |
| Free Cash after EMI | — |
Key Numbers Explained
DSCR Formula: —
Monthly Revenue Swing: —
Safe EMI Limit: —
Revenue Increase: —
Recommendation
—
Payment Options Comparison
| Option | EMI | Total Interest | Total Paid |
|---|
Annual Amortization Summary
| Year | Principal Paid | Interest Paid | Outstanding |
|---|
Quick Definitions - In Simple Terms
- EMI: Your fixed monthly loan payment (like a rent payment for the loan)
- DSCR: Yearly Profit ÷ Yearly EMI Payments. Lenders want this to be 1.2–1.5 or higher
- Working Capital Reserve: Emergency cash saved up (in months of revenue)
- Break-even: Months until you recover ALL costs (loan + investment + reserve)
- Payback: Months until your investment pays for itself from extra revenue
- Runway: For startups - how many months you can operate before running out of funds
⚠️ Important Disclaimer:
These calculations are estimates and not financial advice. Consult a licensed financial advisor or
your lender for personalized guidance and exact loan terms.
📊 How to Interpret Your Results
Use this guide to understand what each metric means for your loan decision:
📈 DSCR (Debt Service Coverage Ratio)
Measures your ability to pay the loan from profits
≥ 1.5: Excellent — Lenders love this. You have 50%+ buffer.
1.25 – 1.49: Good — Comfortable margin for most lenders.
1.1 – 1.24: Borderline — May require collateral or guarantor.
< 1.1: Risky — Profits barely cover EMI. High rejection chance.
💡 Tip: DSCR = Annual Profit ÷ Annual EMI. A DSCR of 1.5 means you earn
₹1.50 for every ₹1 you owe in EMI.
💰 EMI as % of Revenue
What portion of your income goes to loan payment
≤ 20%: Safe — Plenty of room for operations & emergencies.
21% – 30%: Manageable — Common for business loans, watch cash
flow.
> 30%: Strained — Risk of cash crunch during slow months.
💡 Tip: If your business has seasonal revenue swings, keep EMI below 20% to
handle low months.
⏱️ Break-even Period
Time to recover all costs including loan + investment
≤ 12 months: Excellent — Quick return on investment.
13 – 24 months: Good — Standard for most business loans.
25 – 36 months: Acceptable — Common for larger investments.
> 36 months: Long — Consider if the investment justifies the
wait.
💡 Tip: Break-even should ideally be less than half your loan tenure.
🔄 Payback Period
Time for your investment to pay for itself from extra revenue
≤ 6 months: Excellent — Investment returns money very quickly.
7 – 18 months: Good — Healthy payback for most investments.
19 – 30 months: Fair — Reasonable for capital-intensive
investments.
> 30 months: Slow — Re-evaluate if expected revenue increase is
realistic.
💡 Tip: Lower payback = lower risk. Aim for payback under 2 years.
✅ Understanding the Overall Verdict
What the colored badges mean for your loan application
✅ Affordable / Excellent
Loan is within safe limits. Proceed confidently.
⚠️ Manageable / Moderate Risk
Proceed with caution. Review your assumptions.
❌ High Risk / Not Affordable
Reconsider loan amount, tenure, or business model.
🎯 Quick Decision Guide:
For a safe loan: DSCR ≥ 1.25, EMI ≤ 25% of revenue, and positive cash flow after EMI.
If any metric is in the red zone, consider reducing the loan amount or extending the tenure.