Restaurant Loan Affordability Calculator — 2026

If this monthly payment fits within your cash-flow cushion—typically 40% or less of gross monthly revenue—you're likely a candidate for approval. Your actual rate and term depend on credit profile, time in business, and collateral.

What changes your rate and affordability

• Credit score. Scores 740+ FICO qualify for SBA 7(a) rates of 8–10% APR; fair credit (620–679 FICO) runs 10–13% APR. A single hard inquiry costs 5–10 points and recovers in weeks—use a soft-pull rate check first.
• Time in business. Most lenders require 24+ months operating history. Newer concepts often need a personal guarantee or co-signer; established multi-unit operators qualify for larger lines of credit and better terms.
• Debt service coverage ratio (DSCR). Lenders want to see monthly profit at least 1.25× your total monthly debt. A thin margin restaurant with seasonal revenue may need a shorter term or smaller loan to hit this threshold.
• Collateral and loan type. Equipment financing (60–84 months) and SBA loans spread risk differently. Equipment you own locks in tax benefits—Section 179 expensing lets you deduct up to $1,220,000 in 2026—while working capital for inventory or cash-flow management typically runs 9–13% APR with shorter terms.
• Lender model. Bad-credit-focused restaurant lenders often factor seasonal dips and accept lower DSCR; traditional banks move slower but offer lower floor rates to strong credit.

How to use this

• Enter your loan amount. Start with what you need—equipment replacement, inventory buildup, or expansion capital. Don't guess; pull your most recent invoice or quote.
• Input your gross monthly revenue. Use a 3–6 month average from bank statements. If seasonal, use the low season; you'll see if a high payment strains your cash flow.
• Set your credit score and term. Shorter terms cut interest cost but raise monthly payment. Fair credit? Run the math at 11–12% APR and 60–72 months to land a realistic result.
• Read the payment against your revenue. Divide the monthly payment by gross revenue; if it's under 4%, you have room. At 4–5%, you're tight. Above 5%, you'll need to either grow revenue, reduce loan size, or extend the term—or look at alternative structures for restaurant operators with fair credit.
• Compare to current debt. Add this payment to existing equipment loans, lines of credit, and credit card minimums. If total monthly debt service exceeds 40% of revenue, approval odds drop.

Bottom line

This calculator surfaces what lenders see: whether your cash flow can absorb the payment without starving operations. Use it to test loan size and term before applying, so you walk in with a realistic number and avoid multiple hard inquiries that ding your score.