UNDERSTANDING AFFORDABILITY
How the loan affordability calculator works
Start with your expected monthly revenue and normal operating expenses. Then enter the monthly payment for the loan you are considering.
The calculator estimates how much cash remains after operating expenses and the proposed debt payment.
This provides a cash-flow view of financing rather than looking only at the loan payment itself.
The results are estimates for planning purposes. A lender may evaluate additional factors such as historical financial performance, existing obligations, collateral, credit history, and its own underwriting requirements.
What the results tell you
CASH BEFORE DEBT
Operating cash available
Revenue minus normal monthly operating expenses before the proposed loan payment.
CASH AFTER DEBT
Cash remaining after payment
The estimated amount remaining after operating expenses and the proposed loan payment.
PAYMENT-TO-REVENUE
Payment relative to revenue
Shows the proposed monthly debt payment as a percentage of monthly revenue.
ANNUAL DEBT SERVICE
Yearly payment requirement
Shows the total amount of proposed loan payments over a twelve-month period.