Business Debt-to-Income Ratio Calculator
See where your business stands with lenders before you apply for anything.
What Is the Business Debt-to-Income Ratio?
Your business DTI tells lenders one thing: can you handle more debt? It's the percentage of monthly gross revenue that goes to debt payments. Under 35% and you're in good shape -- most lenders will work with you. Between 35% and 50%, expect pushback and higher rates. Above 50%, traditional lenders will say no and you'll be stuck with MCAs and other expensive options. This calculator shows your current ratio and how much more monthly debt your business could carry before hitting lender thresholds. Run this before you apply for anything. Knowing your DTI upfront saves you from wasted applications and hard credit pulls that drag your score down for no reason.
How to Use This Calculator
Enter Monthly Gross Revenue
Use your average monthly gross revenue over the last 6-12 months. Pull it from your P&L or bank deposit history -- don't guess.
Enter Total Monthly Debt Payments
Add up every monthly debt payment: term loans, credit lines, MCA holdbacks (multiply daily by 22 for monthly), equipment leases, credit card minimums -- everything.
Review Your Ratio and Capacity
See where you land against common lender cutoffs and how much additional monthly debt your business could carry.
Key Concepts
Under 35%: Strong Position
You have room to borrow. Most SBA lenders, banks, and credit unions will look at your application favorably and offer competitive rates.
35-50%: Caution Zone
You might still qualify, but expect higher rates and a lot more questions. Pay down existing debt before stacking on more.
Over 50%: High Risk
Traditional lenders will almost certainly turn you down. Your only options are MCAs and other expensive products. Focus on reducing debt before looking for more capital.
DSCR vs. DTI
DSCR uses net operating income instead of gross revenue, making it a tighter measure. SBA lenders typically want 1.25x or higher -- meaning your income is 25% more than your debt payments.
Expert Insights
Business DTI and personal DTI are different animals. Lenders want under 35% on gross revenue, but they'll also dig into your net income, cash reserves, and how old your receivables are.
Above 50% DTI? The fastest fix is killing your smallest debt completely rather than spreading extra payments around. Eliminating one payment line drops your ratio immediately.
If your business is seasonal, calculate DTI using your worst months, not your annual average. Lenders will stress-test your slow season, so you should too.
Frequently Asked Questions
This calculator provides estimates for educational purposes only. Actual results depend on your specific business financials, lender terms, and market conditions. Consult a qualified financial advisor before making major business financing decisions.
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