Worksheet
SBA Loan Payment and DSCR Worksheet
Last updated: November 2026
Published by 1West, the business financing marketplace this guide covers. This is a 1West resource, not an independent review.
Can my business afford the payment on an SBA loan?
Your business can typically support a loan payment when cash flow covers all debt payments by a margin, and many lenders look for at least 1.25 times coverage.
The SBA Ready Guide worksheet from 1West estimates your monthly payment, total interest and debt service coverage ratio from figures you enter. It is a planning estimate only. A lender's offer sets the real rate and term, and a lender decides eligibility.
Section 1: Estimate your payment and DSCR
Fill in every field with a valid number to see your estimate. Commas, dollar signs and percent signs are fine.
Section 2: What is a debt service coverage ratio?
Definition card
DSCR, defined
Debt service coverage ratio (DSCR) compares the cash your business generates with the debt payments it owes. As SBA Ready Guide uses it, DSCR equals annual cash flow available for debt payments divided by total annual debt payments, including the new loan. SBA Loan Requirements in 2026: What Lenders Want to See, ARF Financial reports that many lenders prefer a DSCR of at least 1.25, meaning the business generates $1.25 in cash flow for every $1.00 of debt payments.
A ratio below 1.0 means cash flow does not cover payments. Between 1.0 and 1.25 is thin. Lenders also weigh credit, collateral, industry and trends, so DSCR is one input, not the decision.
Section 3: Which interest rate should you test?
Use a rate from a real offer when you have one. Until then, test a range. SBA Loan Rates November 2026, NerdWallet lists SBA 7(a) loans at 10% to 15% (maximum allowed range) and SBA 504 loans at 5% to 7%. Running both ends of the range shows how sensitive your coverage is to rate. These are market figures, not 1West rates.
Section 4: What can this worksheet not tell you?
It cannot tell you whether you qualify, what rate you will receive, or whether a lender will approve your file. It assumes a fixed rate, equal monthly payments and no fees; real loans may include guarantee fees, closing costs and variable rates. Use the result to prepare questions, then check the full SBA loan requirements checklist and how to apply for an SBA loan.
Common questions
- What is the monthly payment on a $50,000 business loan?
- It depends on the rate and term. A shorter term or higher rate raises the payment; a longer term lowers it but adds total interest. The SBA Ready Guide worksheet calculates a standard amortized payment from the amount, rate and term you enter, so you can test several scenarios before you talk to a lender.
- How much would a $50,000 business loan cost?
- Total cost equals every payment plus fees, minus the $50,000 you borrowed. Rate, term, origination or guarantee fees and prepayment terms all change it. Compare offers by APR and total repayment, not the monthly payment alone. The worksheet on this site shows total interest for any rate and term you enter, as an estimate.
- What is the monthly payment on a $250,000 business loan?
- There is no single answer without a rate and term. The same $250,000 produces very different payments over 10 years than over 25 years. Enter the amount, an assumed rate and a term in the SBA Ready Guide worksheet to see an estimated payment, then confirm it against a real lender offer before you decide.
- What is the payment on a $1,000,000 business loan?
- It depends on rate, term and loan type. Published SBA rate ranges show how wide the spread can be: NerdWallet lists 10% to 15% for 7(a) loans and 5% to 7% for 504 loans. Run your own scenarios in the worksheet, and remember that the lender's offer sets the real figure.
- How much income do I need for a $500,000 business loan?
- You need enough cash flow to cover the payment with room to spare. ARF Financial reports many lenders prefer a DSCR of at least 1.25, meaning $1.25 of cash flow for every $1.00 of debt payments. The exact income depends on rate and term. The SBA Ready Guide worksheet estimates the payment and the cash flow that benchmark implies.
- How can you reduce your total loan cost?
- Borrow only what the plan needs, choose the shortest term your cash flow can carry, compare APR and fees across several offers, and improve credit before you apply. Paying ahead can help if the loan has no prepayment penalty. 1West's blog covers more ideas in its post on tips to reduce your total loan cost.