Home Business Loan Calculator 2026

Free Business Loan Calculator of 2026

Instant Pre-Approval Decision, Factor Rate and Repayment Plan

Enter your monthly revenue, daily bank balance, and business profile to receive an instant underwriting decision based on real lender criteria. See your pre-approved amount, factor rate, risk score, and configure your repayment structure live, with no credit impact and no sign-up required.

Calculate My Approval — It’s Free »
No credit impact
Under 2 minutes
Verified lenders only
Underwriting Calculator

Business Loan
Decision Engine

Enter your financials for an instant pre-approval decision, factor rate, and interactive loan configurator

1Revenue
2Profile
3Risk
4Decision
1
Revenue and Bank Balance
Primary approval driver, minimum $30,000 per month required
Avg Monthly Revenue *
$
Monthly revenue is required
Gross monthly deposits
Avg Daily Bank Balance *
$
Daily bank balance is required
Across all business accounts
2
Business Profile
Tenure, open positions, and existing loan exposure
Time in Business (months) *
Time in business is required
Open Loan Positions (#)
Total Open Loan Balances
$
Requested Amount (optional)
$
Leave blank for maximum approval
3
Risk Indicators
NSFs, negative days, stop payments and prior defaults
Monthly NSFs (#)
Non-sufficient funds per month
Negative Days / Month
Days balance went below zero
Stop Payments (#)
Total stop payment incidents
Live Decision Panel
Awaiting input
Your decision appears here
Complete the form and click Calculate
Min $30,000 monthly revenue
12+ months in business
$2,000+ avg daily balance
Max 8 open loan positions
No credit impact, no hard pull
Data is secure and never sold
100% free, always

Configure Your Loan Offer

Adjust sliders, all figures update in real time

Pre-Approved
Loan Amount
Pre-approved up to
$0
$5,000Max
Loan Term
Select number of months
7 mo
1 month18 months
Funding Amount
—
Disbursed to you
Origination Fee
—
2.5% of loan
Net Funding
—
After fee deducted
Factor Rate
—
Cost of capital
Total Payback
—
—
Term Selected
—
—
Repayment Structure
Total Repayments (Business Days)
——
Daily Payment
$—
per business day
Repayments
—
Total Payback
—
Factor Rate
—
How to Use This Calculator
Three Sections. One Clear Decision.

The calculator mirrors the actual underwriting logic used by merchant cash advance and short-term business lenders. Fill in all three sections and click Calculate for your instant result.

1
Revenue and Bank Balance

This is the most important section. Your average monthly revenue determines the maximum loan amount a lender will consider, and your average daily bank balance signals how well your business manages its cash flow day to day. Both are required fields and must meet minimum thresholds before an approval can be generated.

Monthly Revenue Daily Bank Balance
2
Business Profile

How long your business has been operating and how many existing loan positions you currently carry are the two most significant profile factors after revenue. The leverage ratio of your open balances to monthly revenue is calculated and applied to your approval amount.

Time in Business Open Positions Open Balances Requested Amount
3
Risk Indicators

This section captures the negative signals that underwriters look for in bank statements. Non-sufficient funds (NSFs), days when your balance went negative, stop payments, and prior defaults all increase your risk score and reduce your approval amount or factor rate. Be accurate here because these are the exact items lenders examine when reviewing your 3 to 6 months of bank statements.

Monthly NSFs Negative Days Stop Payments Prior Defaults
Understanding Your Results
What Each Decision Outcome Means

The Live Decision Panel on the right side of the calculator shows one of three outcomes. Here is exactly what each one means and what you should do next.

Pre-Approved
Congratulations, You Qualify

Your profile meets all minimum criteria and the underwriting engine has calculated a pre-approved amount, factor rate, and maximum term. Scroll down to the Loan Configurator to adjust your loan amount, term, and repayment frequency to find the structure that fits your cash flow best.

Approval amount calculated from revenue and leverage
Configurator unlocked for real-time adjustments
Click "Find a Lender" below to apply with a real lender
Manual Review
Flagged for Manual Underwriting

Your application did not trigger an automatic decline but contains one or more risk flags that require a human underwriter to review before a final decision is made.

One or more risk flags require manual review
A human underwriter makes the final call
Rate and amount may differ from the estimate shown
Application Declined
Unable to Approve

One or more hard decline criteria were triggered. The decline reason or reasons are listed in the panel.

Decline reasons listed in the panel
Review each reason and address where possible
Recalculate once your profile improves
Some lenders have different criteria, use compare lenders below
Key Terms Explained
Every Number in Your Decision, Defined

The calculator outputs several figures that look unfamiliar if you have not been through the MCA or short-term lending process before. Here is exactly what each one means in plain language.

Factor Rate

A factor rate is the cost of capital expressed as a multiplier rather than an annual percentage rate. Unlike a traditional loan that charges interest over time, a merchant cash advance multiplies your funded amount by the factor rate to calculate the total payback amount upfront. The factor rate is fixed and does not decrease if you repay early.

Example: $50,000 funded at a 1.30 factor rate = $65,000 total payback. The extra $15,000 is the cost of the advance regardless of term length.
Risk Score

The risk score is a composite number from 0 to 100 calculated from your bank balance, time in business, open positions, leverage ratio, NSFs, negative days, stop payments, and default history. A lower score means fewer risk factors, better terms, and a higher approval amount. A score above 60 will reduce your approval amount and increase your factor rate significantly.

Tiers: 0 to 20 is A Paper (best rates). 21 to 40 is B Paper. 41 to 60 is C Paper. 61 plus is D Paper (reduced approval, highest rates).
Approval Amount vs Net Funding

The approval amount is the gross loan or advance you are approved for. The net funding is what actually arrives in your bank account after the origination fee has been deducted. The origination fee in this calculator is set at 2.5 percent of the loan amount and is deducted from the disbursement before you receive it, which is standard industry practice.

Example: $50,000 approved at 2.5% origination fee. Fee is $1,250, deducted at funding. Net funding received is $48,750.
Repayment Structure

Business loan repayments are made daily or weekly via ACH from your business bank account on every business day or every week respectively. The repayment amount is fixed because the total payback is calculated upfront using the factor rate. The slider in the configurator lets you spread the total payback over more or fewer payment periods to find the daily or weekly amount that your cash flow can comfortably support.

Example: $65,000 total payback over 130 business days = $500 per day, automatically debited every business day.
FAQ
Calculator and Loan
Questions, Answered

Clear answers to the most common questions about how the calculator works, what the results mean, and what to do next.

1 Is this a real loan application or just an estimate?
This is a pre-qualification estimator, not a formal loan application. The calculator uses real underwriting logic drawn from how merchant cash advance and short-term business lenders actually evaluate applications, but the result is an estimate based on the inputs you provide. No credit pull is triggered, no data is sent to any lender, and no formal application is created. To receive an official offer you must apply directly with a lender. Use the Compare Lenders section below to find a verified lender that matches your profile and apply from there.
2 What is an MCA and how is it different from a traditional business loan?
A merchant cash advance (MCA) is a form of business funding where a lender advances you a lump sum in exchange for a fixed repayment amount drawn daily or weekly from your bank account. Key differences from a traditional loan: repayment is a fixed total amount calculated using a factor rate rather than an interest rate that decreases as you pay down the balance. There is no collateral requirement. Approval is based on your bank statement performance rather than your credit score. Funding can arrive within 24 to 72 hours compared to weeks for traditional loans. The trade-off is higher cost of capital, which is reflected in factor rates typically ranging from 1.15 to 1.60 depending on risk profile.
3 How is my approval amount calculated?
The approval amount is calculated primarily from your average monthly revenue multiplied by a leverage multiplier that adjusts for risk. A clean profile with no open positions, strong daily balance, and no risk indicators can be approved for up to 100 percent of monthly revenue. The multiplier is reduced when risk factors are present. Open position leverage is the most impactful factor: if your existing outstanding loan balances exceed 75 to 100 percent of your monthly revenue, the available approval amount drops significantly. At 150 percent leverage the application is automatically declined. The calculation is: (monthly revenue x leverage multiplier) rounded to the nearest $1,000 increment, minimum $5,000.
4 What causes an automatic decline and how do I avoid one?
There are six automatic decline triggers in this calculator. Revenue below $30,000 per month: most MCA lenders require at least $10,000 to $30,000 in monthly deposits. Under 12 months in business: some lenders go down to 6 months, but 12 is the standard threshold. Daily bank balance below $2,000: a consistently low balance signals insufficient cash flow to support daily repayments. Nine or more open loan positions: this represents maximum permitted exposure across most lender policies. More than one stop payment: multiple stop payments are treated as an intentional default signal. Leverage over 150 percent: the business is already overextended relative to its revenue. If you triggered a decline, address the specific reason shown and recalculate once your situation improves.
5 What does the risk score mean and how does it affect my offer?
The risk score is a 0 to 100 composite index built from all the non-decline risk factors in your application. Each factor contributes points: a low daily balance adds 8 to 20 points, each open loan position adds 8 to 45 points, leverage above 25 percent adds 10 to 50 points, NSFs add 5 to 30 points, negative days add 5 to 30 points, and prior defaults or restructured payments add 12 to 15 points. The risk score affects two things: first, it sets your paper tier from A through D, which determines your factor rate range. A Paper starts at 1.20. D Paper can reach 1.60. Second, scores above 40 trigger reductions to the approval amount to protect the lender's risk exposure. A clean profile with a score of 0 to 20 will receive the best available rate and the highest possible approval amount.
6 How do I use the Loan Configurator after receiving a pre-approval?
Once you receive a pre-approval the Loan Configurator appears below the calculator. It has two sliders at the top: Loan Amount lets you adjust the funded amount from $5,000 up to your maximum pre-approved amount. Loan Term sets the number of months, up to your maximum based on your profile. All six detail tiles update in real time as you adjust: Funding Amount, Origination Fee, Net Funding, Factor Rate, Total Payback, and Term. Below that, the Repayment Structure section lets you toggle between Daily and Weekly payments and use a third slider to choose how many payment periods to spread the repayment across. The payment card on the right shows your daily or weekly payment amount, total repayments, total payback, and factor rate all updating live as you move the sliders.
7 Will using this calculator affect my credit score?
No. This calculator runs entirely in your browser. No data is transmitted to any server, no lender receives your information, and no credit bureau is contacted. There is no hard pull, no soft pull, and no footprint of any kind on your personal or business credit profile. The only way a credit inquiry occurs is when you choose to apply directly with a lender after using this tool. Even then, many of the lenders featured on our platform offer a soft-pull or no-pull pre-qualification step before a hard inquiry is ever triggered.
8 How accurate is this calculator compared to a real lender decision?
The calculator models the underwriting logic used by most merchant cash advance and short-term business lenders with reasonable accuracy for the inputs it covers. However, real lender decisions involve additional factors this calculator does not include: industry type, geographic restrictions, specific bank statement patterns, the age and type of existing positions, personal credit score requirements at some lenders, and individual lender policy overlays that vary by provider. The result is best treated as a directional indicator, giving you a realistic sense of whether you are likely to be approved, in what range, and at what cost, rather than a guaranteed offer. For the most accurate outcome, compare multiple lenders and apply to those whose stated criteria match your profile.
Calculator Disclaimer: This tool is for informational and educational purposes only. Results are estimates based on the inputs you provide and do not constitute a loan offer, guarantee of approval, or commitment to lend. Actual loan offers, rates, and terms are determined solely by the lender based on your individual business and financial profile. Business Loans IQ is not a lender and makes no credit decisions. Always review full loan terms with your lender and consult a qualified financial advisor before entering into any financing agreement.