Restaurant Loan Calculator | Estimate Payments

Use the restaurant loan calculator below to estimate a monthly payment from three inputs: loan amount, term, and rate. Then run the number that actually decides your application — your debt service coverage ratio, which is monthly cash flow divided by that monthly payment. Lenders generally want at least 1.15x, and many want 1.25x or better.

How to read the result

The payment figure is straightforward amortization math and will be close to what a term loan or SBA loan actually costs monthly. Two cautions on interpreting it:

The rate you enter is an assumption, not a quote. Pricing depends on product type, credit profile, time in business, revenue consistency, and whether the loan is secured. Run the calculator across a range rather than a single optimistic rate — see restaurant loan rates for how ranges differ by product.

Short-term products don't amortize this way. Merchant cash advances and similar revenue-based products use a factor rate with daily or weekly remittance, not a monthly amortized payment. This calculator will understate their true cost. Convert to an effective annualized cost before comparing them against a term loan.

The number that matters more than the payment

Once you have an estimated payment, divide your average monthly cash flow by it:

DSCR = monthly cash flow ÷ monthly debt payment

• Below 1.15x — likely a partial approval or a denial. Reduce the amount or lengthen the term and recalculate.
• 1.15x to 1.25x — workable at many lenders, tight at conservative ones.
• Above 1.25x — comfortably inside most credit boxes.

Insufficient coverage is the most common reason restaurant applications fail, ahead of credit score. Why restaurant loans get denied covers the data behind that.

If the payment doesn't clear the floor, the three levers are the same ones lenders will suggest: borrow less, extend the term, or improve cash flow before applying. Extending the term is usually the fastest fix.

Which product to model

A line of credit is worth modeling differently: you pay interest on what you draw, so a fixed monthly payment overstates the cost of a facility you use intermittently.

For how every option compares on cost, speed, and structure, start at restaurant loans. To check your file before applying, see restaurant loan requirements and how to get a restaurant loan.

Frequently asked questions

How accurate is this restaurant loan calculator?

The payment math is exact for an amortizing loan at the rate and term you enter. Its accuracy depends entirely on whether your assumed rate resembles what you're actually offered — which is why running a range is more useful than a single figure.

What interest rate should I assume?

Use a range rather than one number. SBA products generally price lowest, conventional term loans and lines of credit higher, and short-term advances highest by a wide margin. Restaurant loan rates explains the ranges by product type.

What monthly payment can my restaurant afford?

Work backward from DSCR: divide monthly cash flow by 1.25 to find a payment most lenders would consider comfortably serviceable. That's usually a more useful starting point than deciding the loan amount first.

Does the calculator include fees?

No — it estimates principal and interest only. SBA guarantee fees, origination fees, and closing costs are additional and vary by program and lender.

Why is my DSCR more important than my credit score?

Because it answers whether the business can make the payment. Strong credit with insufficient coverage still fails underwriting; adequate coverage with imperfect credit is often workable at a higher cost.

Sources

• U.S. Small Business Administration — Loan programs
• Federal Reserve Small Business Credit Survey — 2026 Report on Employer Firms

Estimates only, for educational purposes — not financial advice, not an offer of credit, and not a quote. Actual terms vary by lender and applicant.