Commercial Line of Credit Interest Calculator for Daytona Beach, FL Restaurants and Motels

The calculator on this page works out a level monthly payment from an amount, an annual rate and a number of months. It does not compute a debt service coverage ratio, but its payment is the piece the ratio needs. The ratio is the income available for debt payments divided by all yearly debt payments, the new one included.

Illustration only, invented figures: a gas station with $150,000 of yearly net operating income already pays $48,000 a year on other debt. The calculator puts a $100,000 loan over 60 months at an annual rate of 10.5% at about $2,149 a month, or $25,793 a year. Total yearly debt payments become $73,793, and the ratio is $150,000 divided by that, or 2.03. Partners set their own minimum ratio, so the useful number is how much room is left above it.

For a motel, the useful way to read a refresh payment is per room, because each room has to earn its share. Put the total refresh cost, the offered rate and the term into the calculator, then divide the monthly payment by the number of rooms.

Illustration only, invented figures: a 24-room motel buys movable room furnishings for $120,000, financed over 84 months at an annual rate of 10%. Each installment would come to roughly $1,992, and the 84 of them total $167,340, with interest accounting for $47,340. Spread across 24 rooms, that is about $83.01 per room each month, a figure the owner can set against the extra nightly revenue the new furnishings are expected to support; fixed room work is excluded.

A gas station with a repair bay or a tire service may need a service van. The van is titled, and the title usually secures the financing, so the calculator inputs are the same as for any installment loan.

Illustration only, invented figures: the station's $42,000 service van has an estimated $882 monthly payment over 60 months at 9.5%, totaling $52,925. Interest accounts for $10,925. Add insurance, fuel and upkeep to the monthly figure before deciding whether the van pays its way.

A credit line can be paid back two ways, and the calculator covers only one of them. Some lines ask for interest only on the drawn balance each month, with principal paid whenever the business chooses. Others set a minimum payment that pays the balance off over a set number of months, which is what the calculator models.

Illustration only, invented figures: a quick-service restaurant has $20,000 drawn at an annual rate of 13%. An interest-only month costs about $216.67. Paid off over 12 months instead, the calculator shows about $1,786 a month, $21,436 in all, including $1,436 of interest.

Some lines charge interest on the average daily balance, which the calculator does not track. Illustration only, invented figures: over a 30-day cycle the restaurant carries $12,000 for 10 days, $20,000 for 12 days and $7,000 for 8 days. The average daily balance is about $13,866.67, and at 13% the cycle's interest comes to about $148.16. The line of credit page has a full draw table.

To use the calculator on a drawn balance, enter the balance as the amount, the annual rate from the offer and the number of months the restaurant plans to take paying it off. The result is the level payment that clears it, and the interest shown is what that schedule costs if nothing more is drawn in the meantime. Preparation checklists sit on the resources page, and the request form is the next step once the payment looks affordable.