Working Capital Affordability Calculator: How Much Can You Borrow?

If the monthly payment shown here fits your cash flow, you're likely in the ballpark to qualify—the next step is a soft-pull rate check with a lender to lock in your actual offer. Keep in mind that your final rate depends on your credit profile, collateral, and the lender's appetite for your industry.

What changes your rate or answer

• Credit score: A 680+ score qualifies for SBA-backed and bank term loans at standard rates (5.5–7.5% APR in 2026). Below 620 FICO, expect online and alternative lenders at 12%+ APR, or explore bad-credit business loans and collateral-based options.
• Loan term: Shorter terms (12–24 months) lower total interest but raise monthly payment. Longer terms (36–60 months) spread cost out but increase interest paid overall. SBA 7(a) loans max out at 10 years for equipment, but 5–7 years is standard for working capital.
• Product type: A term loan costs less than a merchant cash advance over time, but MCAs fund in days without credit checks. Lines of credit offer flexibility—you draw only what you need and pay interest only on the balance.
• Debt-to-income ratio: Lenders typically want to see total debt payments (including this new loan) at or below 43% of gross monthly revenue. If you're already above that threshold, a smaller loan or longer term brings you into range.
• Time in business: Most SBA lenders require 24 months operating history; online and alternative lenders may accept 12 months or less, though at a rate premium.

How to use this

• Enter your desired loan amount (principal). Start with what you need to cover payroll, inventory, or operational gaps for the next 3–6 months. Don't borrow more than you can service.
• Select your credit score band (or enter a range). This moves the default rate up or down. If you're unsure, pull a free credit report from AnnualCreditReport.com.
• Pick a product type (term loan, line of credit, merchant cash advance) to see how costs compare. Term loans and best business lines of credit generally cost less; MCAs fund faster but at a premium.
• Adjust the term length to find a payment that works. Longer terms mean lower monthly burden, shorter terms mean less total interest.
• Check your debt-to-income ratio (total monthly debt ÷ gross monthly revenue). If it's above 43%, reduce the loan amount or extend the term until you're in the clear—lenders will reject you otherwise.

Bottom line

This calculator shows what working capital actually costs across the main lending channels. Your real rate and approval odds hinge on credit score, collateral, and time in business—not just the amount you want to borrow. Run the numbers a few ways, then reach out to 2–3 lenders for a soft quote to see where you actually stand.